One Forecaster Is Much More Bearish On Pulse Seismic Inc. (TSE:PSD) Than They Used To Be

Today is shaping up negative for Pulse Seismic Inc. (TSE:PSD) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. 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 consensus from Pulse Seismic's single analyst is for revenues of CA$12m in 2020, which would reflect a substantial 50% decline in sales compared to the last year of performance. Prior to the latest estimates, the analyst was forecasting revenues of CA$27m in 2020. It looks like forecasts have become a fair bit less optimistic on Pulse Seismic, given the sizeable cut to revenue estimates.

View our latest analysis for Pulse Seismic

The consensus price target fell 13% to CA$1.40, with the analyst clearly less optimistic about Pulse Seismic's valuation following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue shrink 3.5% per year. While this is interesting, Pulse Seismic's, revenues are still expected to shrink next year, and at a faster rate than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Pulse Seismic's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Pulse Seismic after today.

Need some more information? One Pulse Seismic broker/analyst has provided estimates out to 2021, which can be seen 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.

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