Rainbows and Unicorns: First Majestic Silver Corp. (TSE:AG) Analysts Just Became A Lot More Optimistic

Celebrations may be in order for First Majestic Silver Corp. (TSE:AG) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

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Following the upgrade, the most recent consensus for First Majestic Silver from its three analysts is for revenues of US$1.7b in 2026 which, if met, would be a satisfactory 2.6% increase on its sales over the past 12 months. Per-share earnings are expected to swell 18% to US$0.83. Before this latest update, the analysts had been forecasting revenues of US$1.4b and earnings per share (EPS) of US$0.42 in 2026. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for First Majestic Silver

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that First Majestic Silver's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2026 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than First Majestic Silver.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about First Majestic Silver's future.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on First Majestic Silver that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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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.