Analyst Forecasts Just Became More Bearish On Ceragon Networks Ltd. (NASDAQ:CRNT)

The analysts covering Ceragon Networks Ltd. (NASDAQ:CRNT) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

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Following the downgrade, the consensus from five analysts covering Ceragon Networks is for revenues of US$341m in 2025, implying a chunky 10% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$395m of revenue in 2025. It looks like forecasts have become a fair bit less optimistic on Ceragon Networks, given the substantial drop in revenue estimates.

See our latest analysis for Ceragon Networks

The consensus price target fell 19% to US$4.75, with the analysts clearly less optimistic about Ceragon Networks' valuation following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 20% by the end of 2025. This indicates a significant reduction from annual growth of 8.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 8.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ceragon Networks is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Ceragon Networks this year. They're also anticipating slower revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. 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 Ceragon Networks after today.

Unanswered questions? We have estimates for Ceragon Networks from its five analysts out until 2026, 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 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.