One Bridgeline Digital, Inc. (NASDAQ:BLIN) Broker Just Cut Their Revenue Forecasts By 10%
The analyst covering Bridgeline Digital, Inc. (NASDAQ:BLIN) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. Investors however, have been notably more optimistic about Bridgeline Digital recently, with the stock price up a remarkable 18% to US$1.06 in the past week. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.
Following the latest downgrade, Bridgeline Digital's sole analyst currently expects revenues in 2024 to be US$16m, approximately in line with the last 12 months. Before the latest update, the analyst was foreseeing US$18m of revenue in 2024. The consensus view seems to have become more pessimistic on Bridgeline Digital, noting the measurable cut to revenue estimates in this update.
See our latest analysis for Bridgeline Digital
There was no particular change to the consensus price target of US$3.13, with Bridgeline Digital's latest outlook seemingly not enough to result in a change of valuation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Bridgeline Digital's revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Bridgeline Digital is also expected to grow slower than other industry participants.
The Bottom Line
The clear low-light was that the analyst slashing their revenue forecasts for Bridgeline Digital this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Bridgeline Digital after today.
Want more information? We have forecasts for Bridgeline Digital from one covering analyst, 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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