Seeing Machines Limited (LON:SEE) Analysts Just Slashed This Year's Revenue Estimates By 17%

Market forces rained on the parade of Seeing Machines Limited (LON:SEE) shareholders today, when the analysts downgraded their forecasts for this year. 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 current consensus, from the two analysts covering Seeing Machines, is for revenues of US$58m in 2025, which would reflect a definite 14% reduction in Seeing Machines' sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$70m in 2025. The consensus view seems to have become more pessimistic on Seeing Machines, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Seeing Machines

The consensus price target rose 25% to AU$0.23, with the analysts clearly more optimistic about Seeing Machines' prospects following this update. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Seeing Machines, with the most bullish analyst valuing it at AU$0.29 and the most bearish at AU$0.17 per share. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 14% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 22% 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 5.7% annually for the foreseeable future. It's pretty clear that Seeing Machines' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Seeing Machines this year. They're also anticipating slower revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Seeing Machines going forwards.

Still got questions? At least one of Seeing Machines' two analysts has provided estimates out to 2027, which can be seen for 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 backed by insiders.

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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.