Analyst Forecasts Just Became More Bearish On Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI)
One thing we could say about the analysts on Maravai LifeSciences Holdings, Inc. (NASDAQ:MRVI) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. Surprisingly the share price has been buoyant, rising 10% to US$5.19 in the past 7 days. Whether the downgrade will have a negative impact on demand for shares is yet to be seen.
After the downgrade, the consensus from Maravai LifeSciences Holdings' twelve analysts is for revenues of US$278m in 2024, which would reflect a disturbing 34% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of US$336m in 2024. The consensus view seems to have become more pessimistic on Maravai LifeSciences Holdings, noting the substantial drop in revenue estimates in this update.
See our latest analysis for Maravai LifeSciences Holdings
The consensus price target fell 26% to US$10.00, with the analysts clearly less optimistic about Maravai LifeSciences Holdings' valuation following this update.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 28% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 24% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.8% annually for the foreseeable future. It's pretty clear that Maravai LifeSciences Holdings' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for next year. They're also anticipating slower revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Maravai LifeSciences Holdings' future valuation. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Maravai LifeSciences Holdings going forwards.
Of course, there's always more to the story. We have estimates for Maravai LifeSciences Holdings from its twelve analysts out until 2025, and you can see them 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
