Some Analysts Just Cut Their Meyer Burger Technology AG (VTX:MBTN) Estimates
The latest analyst coverage could presage a bad day for Meyer Burger Technology AG (VTX:MBTN), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
After the downgrade, the nine analysts covering Meyer Burger Technology are now predicting revenues of CHF226m in 2023. If met, this would reflect a major 21% improvement in sales compared to the last 12 months. Losses are supposed to balloon 26% to CHF0.033 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of CHF261m and losses of CHF0.033 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.
View our latest analysis for Meyer Burger Technology
The consensus price target fell 33% to CHF0.33, with the analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Meyer Burger Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 45% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 35% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.0% per year. Not only are Meyer Burger Technology's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better 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 Meyer Burger Technology's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Meyer Burger Technology going forwards.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Meyer Burger Technology analysts - going out to 2026, 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 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.
