Analysts Are More Bearish On Niagen Bioscience, Inc. (NASDAQ:NAGE) Than They Used To Be
One thing we could say about the analysts on Niagen Bioscience, Inc. (NASDAQ:NAGE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.
Following the downgrade, the latest consensus from Niagen Bioscience's six analysts is for revenues of US$137m in 2027, which would reflect a notable 12% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to tumble 63% to US$0.048 in the same period. Before this latest update, the analysts had been forecasting revenues of US$155m and earnings per share (EPS) of US$0.17 in 2027. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.
Check out our latest analysis for Niagen Bioscience
The consensus price target fell 12% to US$10.67, with the weaker earnings outlook clearly leading analyst valuation estimates.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Niagen Bioscience's revenue growth is expected to slow, with the forecast 9.6% annualised growth rate until the end of 2027 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% annually. Even after the forecast slowdown in growth, it seems obvious that Niagen Bioscience is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts 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 analysts, we'd understand if readers now felt a bit wary of Niagen Bioscience.
So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Niagen Bioscience, including its declining profit margins. For more information, you can click here to discover this and the 1 other risk we've identified.
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