Need To Know: The Consensus Just Cut Its Mayville Engineering Company, Inc. (NYSE:MEC) Estimates For 2025

Market forces rained on the parade of Mayville Engineering Company, Inc. (NYSE:MEC) shareholders today, when the analysts downgraded their 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.

Following the latest downgrade, the four analysts covering Mayville Engineering Company provided consensus estimates of US$589m revenue in 2025, which would reflect a discernible 3.3% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$663m of revenue in 2025. The consensus view seems to have become more pessimistic on Mayville Engineering Company, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Mayville Engineering Company

Notably, the analysts have cut their price target 20% to US$19.67, suggesting concerns around Mayville Engineering Company'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. We would highlight that sales are expected to reverse, with a forecast 2.6% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 8.1% 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 3.1% annually for the foreseeable future. It's pretty clear that Mayville Engineering Company'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. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Mayville Engineering Company after today.

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 Mayville Engineering Company's business, like recent substantial insider selling. Learn more, and discover the 1 other warning sign 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 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.