One CLS Holdings plc (LON:CLI) Analyst Has Been Cutting Their Forecasts

The latest analyst coverage could presage a bad day for CLS Holdings plc (LON:CLI), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the lone analyst covering CLS Holdings provided consensus estimates of UK£129m revenue in 2022, which would reflect a measurable 7.8% decline on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of UK£148m in 2022. It looks like forecasts have become a fair bit less optimistic on CLS Holdings, given the measurable cut to revenue estimates.

See our latest analysis for CLS Holdings

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 7.8% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 2.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 0.5% annually for the foreseeable future. It's pretty clear that CLS Holdings' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for CLS Holdings this year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of CLS Holdings going forwards.

Unanswered questions? One CLS Holdings broker/analyst has provided estimates out to 2024, which can be seen for free on our platform here.

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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.