Yahoo Finance Need To Know: The Consensus Just Cut Its Tidewater Midstream and Infrastructure Ltd. (TSE:TWM) Estimates For 2024
Market forces rained on the parade of Tidewater Midstream and Infrastructure Ltd. (TSE:TWM) shareholders today, when the analysts downgraded their 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.
Following the downgrade, the most recent consensus for Tidewater Midstream and Infrastructure from its two analysts is for revenues of CA$2.1b in 2024 which, if met, would be a credible 4.9% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$2.5b in 2024. It looks like forecasts have become a fair bit less optimistic on Tidewater Midstream and Infrastructure, given the measurable cut to revenue estimates.
See our latest analysis for Tidewater Midstream and Infrastructure
The consensus price target fell 6.6% to CA$1.01, with the analysts clearly less optimistic about Tidewater Midstream and Infrastructure's valuation following this update.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Tidewater Midstream and Infrastructure's revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2024 being well below the historical 32% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.6% annually. Factoring in the forecast slowdown in growth, it looks like Tidewater Midstream and Infrastructure is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to grow approximately in line with 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 Tidewater Midstream and Infrastructure after today.
Hungry for more information? We have estimates for Tidewater Midstream and Infrastructure from its two 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 that insiders are buying.
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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.
