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editorial-team@simplywallst.com (Simply Wall St)
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The latest analyst coverage could presage a bad day for enCore Energy Corp. (CVE:EU), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook – perhaps a sign that investors should temper their expectations as well. Shares are up 6.7% to CA$2.23 in the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.
Following this downgrade, enCore Energy’s four analysts are forecasting 2025 revenues to be US$57m, approximately in line with the last 12 months. Before the latest update, the analysts were foreseeing US$99m of revenue in 2025. The consensus view seems to have become more pessimistic on enCore Energy, noting the pretty serious reduction to revenue estimates in this update.
See our latest analysis for enCore Energy
The consensus price target fell 14% to CA$6.06, with the analysts clearly less optimistic about enCore Energy’s valuation following this update.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the enCore Energy’s past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.5% by the end of 2025. This indicates a significant reduction from annual growth of 91% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.9% per year. It’s pretty clear that enCore Energy’s revenues are expected to perform substantially worse than the wider industry.
The clear low-light was that analysts slashing their revenue forecasts for enCore Energy this year. They also expect company revenue to perform worse than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we’d understand if investors became more cautious on enCore Energy after today.
Of course, this isn’t the full story. We have estimates for enCore Energy from its four analysts out until 2027, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.
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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.
