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The latest analyst coverage could presage a bad day for Exro Technologies Inc. (TSE:EXRO), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
Following the downgrade, the current consensus from Exro Technologies' five analysts is for revenues of CA$97m in 2025 which - if met - would reflect a substantial 342% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$158m in 2025. The consensus view seems to have become more pessimistic on Exro Technologies, noting the pretty serious reduction to revenue estimates in this update.
View our latest analysis for Exro Technologies
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Exro Technologies' past performance and to peers in the same industry. The analysts are definitely expecting Exro Technologies' growth to accelerate, with the forecast 228% annualised growth to the end of 2025 ranking favourably alongside historical growth of 90% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Exro Technologies to grow faster than the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Exro Technologies next year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Exro Technologies going forwards.
That said, the analysts might have good reason to be negative on Exro Technologies, given a short cash runway. For more information, you can click here to discover this and the 2 other flags 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 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.