PSQ Holdings, Inc.'s (NYSE:PSQH) Analyst Just Slashed This Year's Estimates

Market forces rained on the parade of PSQ Holdings, Inc. (NYSE:PSQH) shareholders today, when the covering analyst downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After the downgrade, the sole analyst covering PSQ Holdings is now predicting revenues of US$24m in 2024. If met, this would reflect a sizeable 66% improvement in sales compared to the last 12 months. Losses are expected to increase slightly, to US$1.62 per share. Yet before this consensus update, the analyst had been forecasting revenues of US$29m and losses of US$1.27 per share in 2024. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for PSQ Holdings

The consensus price target fell 33% to US$5.00, implicitly signalling that lower earnings per share are a leading indicator for PSQ Holdings' valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PSQ Holdings' past performance and to peers in the same industry. We would highlight that PSQ Holdings' revenue growth is expected to slow, with the forecast 177% annualised growth rate until the end of 2024 being well below the historical 986% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% per year. So it's pretty clear that, while PSQ Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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 PSQ Holdings. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of PSQ Holdings.

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 PSQ Holdings' business, like dilutive stock issuance over the past year. Learn more, and discover the 3 other flags we've identified, for 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 with high insider ownership.

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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.