Revenue Downgrade: Here's What Analysts Forecast For UP Fintech Holding Limited (NASDAQ:TIGR)

The latest analyst coverage could presage a bad day for UP Fintech Holding Limited (NASDAQ:TIGR), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. Investors however, have been notably more optimistic about UP Fintech Holding recently, with the stock price up a magnificent 46% to US$5.98 in the past week. With such a sharp increase, it seems brokers may have seen something that is not yet being priced in by the wider market.

Following the downgrade, the most recent consensus for UP Fintech Holding from its six analysts is for revenues of US$258m in 2022 which, if met, would be an okay 4.9% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$332m in 2022. The consensus view seems to have become more pessimistic on UP Fintech Holding, noting the sizeable cut to revenue estimates in this update.

Check out our latest analysis for UP Fintech Holding

There was no particular change to the consensus price target of US$12.04, with UP Fintech Holding's latest outlook seemingly not enough to result in a change of valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic UP Fintech Holding analyst has a price target of US$38.50 per share, while the most pessimistic values it at US$5.40. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that UP Fintech Holding's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 54% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 0.09% annually. So it's pretty clear that, while UP Fintech Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for UP Fintech Holding this year. The analysts also expect revenues to grow faster than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on UP Fintech Holding after today.

Thirsting for more data? We have estimates for UP Fintech Holding from its six analysts out until 2024, and you can see them free on our platform here.

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 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.