What You Need To Know About The MP Materials Corp. (NYSE:MP) Analyst Downgrade Today
Today is shaping up negative for MP Materials Corp. (NYSE:MP) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the latest downgrade, the current consensus, from the twelve analysts covering MP Materials, is for revenues of US$244m in 2023, which would reflect a disturbing 35% reduction in MP Materials' sales over the past 12 months. Before the latest update, the analysts were foreseeing US$331m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on MP Materials, given the pretty serious reduction to revenue estimates.
View our latest analysis for MP Materials
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 58% by the end of 2023. This indicates a significant reduction from annual growth of 46% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.9% annually for the foreseeable future. It's pretty clear that MP Materials' 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 this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on MP Materials after today.
But wait - there's more! We have estimates for MP Materials 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.
