Berkshire Grey, Inc. (NASDAQ:BGRY) Analysts Just Trimmed Their Revenue Forecasts By 17%

The analysts covering Berkshire Grey, Inc. (NASDAQ:BGRY) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory 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.

After this downgrade, Berkshire Grey's four analysts are now forecasting revenues of US$87m in 2022. This would be a major 181% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$105m in 2022. It looks like forecasts have become a fair bit less optimistic on Berkshire Grey, given the measurable cut to revenue estimates.

Check out our latest analysis for Berkshire Grey

The consensus price target fell 19% to US$9.50, with the analysts clearly less optimistic about Berkshire Grey's valuation following this update. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Berkshire Grey analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$10.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The analysts are definitely expecting Berkshire Grey's growth to accelerate, with the forecast 181% annualised growth to the end of 2022 ranking favourably alongside historical growth of 9.9% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Berkshire Grey to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Berkshire Grey's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Berkshire Grey going forwards.

Still got questions? At least one of Berkshire Grey's four analysts has provided estimates out to 2024, 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 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.