Analyst Forecasts Just Got A Lot More Bearish On Janus International Group, Inc. (NYSE:JBI)

The analysts covering Janus International Group, Inc. (NYSE:JBI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. The stock price has risen 7.1% to US$7.80 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

After the downgrade, the consensus from Janus International Group's five analysts is for revenues of US$850m in 2025, which would reflect an uneasy 15% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$955m of revenue in 2025. The consensus view seems to have become more pessimistic on Janus International Group, noting the substantial drop in revenue estimates in this update.

See our latest analysis for Janus International Group

The consensus price target fell 32% to US$9.00, with the analysts clearly less optimistic about Janus International Group's valuation following this update.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Janus International Group's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 12% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.5% per year. It's pretty clear that Janus International Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They also expect company revenue to perform worse than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Janus International Group's financials, such as a weak balance sheet. For more information, you can click here to discover this and the 2 other risks we've identified.

We also provide an overview of the Janus International Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.