Analysts Just Made A Major Revision To Their Local Bounti Corporation (NYSE:LOCL) Revenue Forecasts

One thing we could say about the analysts on Local Bounti Corporation (NYSE:LOCL) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the current consensus from Local Bounti's twin analysts is for revenues of US$62m in 2024 which - if met - would reflect a major 124% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 47% to US$7.83. However, before this estimates update, the consensus had been expecting revenues of US$71m and US$7.66 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Local Bounti

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Local Bounti's past performance and to peers in the same industry. It's clear from the latest estimates that Local Bounti's rate of growth is expected to accelerate meaningfully, with the forecast 124% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 102% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Local Bounti 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 Local Bounti. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Local Bounti after today.

There might be good reason for analyst bearishness towards Local Bounti, like a short cash runway. For more information, you can click here to discover this and the 3 other concerns 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 that insiders are buying.

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