These Analysts Think Bitfarms Ltd.'s (TSE:BITF) Sales Are Under Threat

The latest analyst coverage could presage a bad day for Bitfarms Ltd. (TSE:BITF), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the downgrade, the most recent consensus for Bitfarms from its eight analysts is for revenues of US$289m in 2026 which, if met, would be a huge 23% increase on its sales over the past 12 months. Losses are expected to increase substantially, hitting US$0.11 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$329m and losses of US$0.085 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

See our latest analysis for Bitfarms

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bitfarms' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Bitfarms'historical trends, as the 18% annualised revenue growth to the end of 2026 is roughly in line with the 21% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. It's clear that while Bitfarms' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses next year, suggesting all may not be well at Bitfarms. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Bitfarms after today.

That said, the analysts might have good reason to be negative on Bitfarms, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 1 other flag we've identified.

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 with high insider ownership.

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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.