Yahoo Finance What You Need To Know About The Bridge Investment Group Holdings Inc. (NYSE:BRDG) Analyst Downgrade Today
The analysts covering Bridge Investment Group Holdings Inc. (NYSE:BRDG) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. The stock price has risen 6.6% to US$9.09 over the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.
Following the latest downgrade, the current consensus, from the four analysts covering Bridge Investment Group Holdings, is for revenues of US$344m in 2023, which would reflect an uncomfortable 15% reduction in Bridge Investment Group Holdings' sales over the past 12 months. Before the latest update, the analysts were foreseeing US$395m of revenue in 2023. The consensus view seems to have become more pessimistic on Bridge Investment Group Holdings, noting the substantial drop in revenue estimates in this update.
Check out our latest analysis for Bridge Investment Group Holdings
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. We would also point out that the forecast 19% annualised revenue decline to the end of 2023 is better than the historical trend, which saw revenues shrink 47% annually over the past year By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.8% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Bridge Investment Group Holdings to suffer worse than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Bridge Investment Group Holdings after today.
Worse, Bridge Investment Group Holdings is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. To see more of our financial analysis, you can click through to our free platform to learn more about its balance sheet and specific concerns we've identified.
You can also see our analysis of Bridge Investment Group Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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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