Downgrade: Here's How Analysts See Tigo Energy, Inc. (NASDAQ:TYGO) Performing In The Near Term

The analysts covering Tigo Energy, Inc. (NASDAQ:TYGO) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for Tigo Energy from its four analysts is for revenues of US$57m in 2024 which, if met, would be a solid 16% increase on its sales over the past 12 months. Losses are supposed to balloon 498% to US$0.70 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$77m and losses of US$0.56 per share in 2024. 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 Tigo Energy

The consensus price target fell 7.2% to US$3.67, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Tigo Energy's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 34% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 72% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.0% annually. Not only are Tigo Energy's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

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 Tigo Energy. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Tigo Energy.

That said, the analysts might have good reason to be negative on Tigo Energy, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 4 other warning signs 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 with high insider ownership.

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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.