Energy Vault Holdings, Inc. (NYSE:NRGV) Analysts Just Slashed This Year's Estimates
Market forces rained on the parade of Energy Vault Holdings, Inc. (NYSE:NRGV) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously. Bidders are definitely seeing a different story, with the stock price of US$5.30 reflecting a 29% rise in the past week. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.
After the downgrade, the five analysts covering Energy Vault Holdings are now predicting revenues of US$97m in 2022. If met, this would reflect a sizeable 122% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.58 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$141m and losses of US$0.51 per share in 2022. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
Check out our latest analysis for Energy Vault Holdings
The consensus price target fell 11% to US$12.70, implicitly signalling that lower earnings per share are a leading indicator for Energy Vault Holdings' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Energy Vault Holdings analyst has a price target of US$19.00 per share, while the most pessimistic values it at US$5.00. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how think this business will perform. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Energy Vault Holdings.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Energy Vault Holdings' financials, such as major dilution from new stock issuance in the past year. Learn more, and discover the 1 other flag we've identified, 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
