This Analyst Just Wrote A Brand New Outlook For Bathurst Resources Limited's (ASX:BRL) Business
Bathurst Resources Limited (ASX:BRL) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The stock price has risen 6.7% to AU$0.40 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?
Following the latest upgrade, the solo analyst covering Bathurst Resources provided consensus estimates of NZ$20m revenue in 2027, which would reflect a measurable 3.0% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 85% to NZ$0.0029 per share. Yet before this consensus update, the analyst had been forecasting revenues of NZ$18m and losses of NZ$0.0088 per share in 2027. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Bathurst Resources
There was no major change to the consensus price target of AU$0.80, perhaps suggesting that the analyst remain concerned about ongoing losses despite the improved earnings and revenue outlook.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bathurst Resources' past performance and to peers in the same industry. We would also point out that the forecast 3.0% annualised revenue decline to the end of 2027 is better than the historical trend, which saw revenues shrink 7.2% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.8% per year. So while a broad number of companies are forecast to grow, unfortunately Bathurst Resources is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Bathurst Resources is moving incrementally towards profitability. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Bathurst Resources.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Bathurst Resources going out as far as 2029, and you can see them free on our platform here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.