Newsflash: Meyer Burger Technology AG (VTX:MBTN) Analysts Have Been Trimming Their Revenue Forecasts

Today is shaping up negative for Meyer Burger Technology AG (VTX:MBTN) shareholders, with the analysts 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 nine analysts covering Meyer Burger Technology are now predicting revenues of CHF226m in 2023. If met, this would reflect a major 21% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching CHF0.033 per share. Yet before this consensus update, the analysts had been forecasting revenues of CHF261m and losses of CHF0.033 per share in 2023. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.

Check out our latest analysis for Meyer Burger Technology

The consensus price target fell 33% to CHF0.33, with the analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Meyer Burger Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 45% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 35% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.0% annually. Not only are Meyer Burger Technology's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Meyer Burger Technology going forwards.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Meyer Burger Technology analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.