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Calyxt, Inc. (NASDAQ:CLXT) Analysts Just Slashed This Year's Revenue Estimates By 21%

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Simply Wall St
·3 min read
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Today is shaping up negative for Calyxt, Inc. (NASDAQ:CLXT) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the most recent consensus for Calyxt from its five analysts is for revenues of US$25m in 2021 which, if met, would be a modest 6.4% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$32m of revenue in 2021. It looks like forecasts have become a fair bit less optimistic on Calyxt, given the pretty serious reduction to revenue estimates.

Check out our latest analysis for Calyxt

earnings-and-revenue-growth
earnings-and-revenue-growth

The consensus price target rose 7.6% to US$11.30, with the analysts clearly more optimistic about Calyxt's prospects following this update. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Calyxt analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$7.50. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Calyxt's revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2021 being well below the historical 82% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 18% annually. Factoring in the forecast slowdown in growth, it seems obvious that Calyxt is also expected to grow slower than other industry participants.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Calyxt this year. They also expect company revenue to perform worse than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given the stark change in sentiment, we'd understand if investors became more cautious on Calyxt after today.

Still got questions? At least one of Calyxt's five analysts has provided estimates out to 2025, which can be seen for 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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.