Newsflash: Standard BioTools Inc. (NASDAQ:LAB) Analysts Have Been Trimming Their Revenue Forecasts

The analysts covering Standard BioTools Inc. (NASDAQ:LAB) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the current consensus from Standard BioTools' three analysts is for revenues of US$172m in 2024 which - if met - would reflect a sizeable 26% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$201m in 2024. The consensus view seems to have become more pessimistic on Standard BioTools, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Standard BioTools

The consensus price target fell 12% to US$3.17, with the analysts clearly less optimistic about Standard BioTools' valuation following this update.

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. For example, we noticed that Standard BioTools' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 58% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.9% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.6% per year. So it looks like Standard BioTools is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Standard BioTools' future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Standard BioTools after today.

That said, the analysts might have good reason to be negative on Standard BioTools, given major dilution from new stock issuance in the past year. Learn more, and discover the 2 other warning signs 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.

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