New Forecasts: Here's What Analysts Think The Future Holds For Auxly Cannabis Group Inc. (TSE:XLY)
Auxly Cannabis Group Inc. (TSE:XLY) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. 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.
Following the upgrade, the current consensus from Auxly Cannabis Group's single analyst is for revenues of CA$181m in 2026 which - if met - would reflect a meaningful 9.3% increase on its sales over the past 12 months. Statutory earnings per share are supposed to tumble 34% to CA$0.21 in the same period. Previously, the analyst had been modelling revenues of CA$164m and earnings per share (EPS) of CA$0.17 in 2026. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.
See our latest analysis for Auxly Cannabis Group
It will come as no surprise to learn that the analyst has increased their price target for Auxly Cannabis Group 14% to CA$4.00 on the back of these upgrades.
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. The analyst is definitely expecting Auxly Cannabis Group's growth to accelerate, with the forecast 19% annualised growth to the end of 2026 ranking favourably alongside historical growth of 15% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Auxly Cannabis Group to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Auxly Cannabis Group.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.