Newsflash: Tigo Energy, Inc. (NASDAQ:TYGO) Analysts Have Been Trimming Their Revenue Forecasts

One thing we could say about the analysts on Tigo Energy, Inc. (NASDAQ:TYGO) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 three analysts covering Tigo Energy provided consensus estimates of US$77m revenue in 2024, which would reflect a sizeable 54% decline on its sales over the past 12 months. Following this this downgrade, earnings are now expected to tip over into loss-making territory, with the analysts forecasting losses of US$0.65 per share in 2024. However, before this estimates update, the consensus had been expecting revenues of US$97m and US$0.60 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.

Check out our latest analysis for Tigo Energy

The consensus price target fell 31% to US$4.03, implicitly signalling that lower earnings per share are a leading indicator for Tigo Energy's valuation.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 46% by the end of 2024. This indicates a significant reduction from annual growth of 54% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.7% annually for the foreseeable future. It's pretty clear that Tigo Energy's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses next year, suggesting all may not be well at Tigo Energy. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Tigo Energy's revenues are expected to grow slower 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 Tigo Energy's future valuation. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Tigo Energy going forwards.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Tigo Energy's business, like major dilution from new stock issuance in the past year. Learn more, and discover the 2 other warning signs we've identified, 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.