Need To Know: The Consensus Just Cut Its The Liberty Braves Group (NASDAQ:BATR.K) Estimates For 2021

The latest analyst coverage could presage a bad day for The Liberty Braves Group (NASDAQ:BATR.K), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the three analysts covering Liberty Braves Group are now predicting revenues of US$391m in 2021. If met, this would reflect a major 121% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$457m in 2021. It looks like forecasts have become a fair bit less optimistic on Liberty Braves Group, given the substantial drop in revenue estimates.

See our latest analysis for Liberty Braves Group

We'd point out that there was no major changes to their price target of US$31.33, suggesting the latest estimates were not enough to shift their view on the value of the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Liberty Braves Group, with the most bullish analyst valuing it at US$40.00 and the most bearish at US$26.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that Liberty Braves Group's rate of growth is expected to accelerate meaningfully, with the forecast 121% revenue growth noticeably faster than its historical growth of 9.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Liberty Braves Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. 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 Liberty Braves Group after today.

But wait - there's more! We have estimates for Liberty Braves Group from its three analysts out until 2023, 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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