Time To Worry? Analysts Are Downgrading Their Meyer Burger Technology AG (VTX:MBTN) Outlook

The latest analyst coverage could presage a bad day for Meyer Burger Technology AG (VTX:MBTN), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the latest consensus from Meyer Burger Technology's seven analysts is for revenues of CHF78m in 2021, which would reflect a major 36% improvement in sales compared to the last 12 months. Losses are forecast to hold steady at around CHF0.024. However, before this estimates update, the consensus had been expecting revenues of CHF88m and CHF0.022 per share in losses. 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 Meyer Burger Technology

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Meyer Burger Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 84% annualised growth until the end of 2021. If achieved, this would be a much better result than the 27% annual decline 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 11% annually. So it looks like Meyer Burger Technology is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Meyer Burger Technology. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Meyer Burger Technology, and a few readers might choose to steer clear of the stock.

That said, the analysts might have good reason to be negative on Meyer Burger Technology, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other flags 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 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.