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What You Need To Know About The Sarcos Technology and Robotics Corporation (NASDAQ:STRC) Analyst Downgrade Today

Market forces rained on the parade of Sarcos Technology and Robotics Corporation (NASDAQ:STRC) shareholders today, when the analysts downgraded their forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After the downgrade, the dual analysts covering Sarcos Technology and Robotics are now predicting revenues of US$14m in 2024. If met, this would reflect a sizeable 22% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$20m of revenue in 2024. The consensus view seems to have become more pessimistic on Sarcos Technology and Robotics, noting the sizeable cut to revenue estimates in this update.

See our latest analysis for Sarcos Technology and Robotics

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earnings-and-revenue-growth

The consensus price target fell 32% to US$1.08, with the analysts clearly less optimistic about Sarcos Technology and Robotics' valuation following this update.

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Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Sarcos Technology and Robotics' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. Even after the forecast slowdown in growth, it seems obvious that Sarcos Technology and Robotics 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 revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Sarcos Technology and Robotics' future valuation. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Sarcos Technology and Robotics going forwards.

Unsatisfied? At least one of Sarcos Technology and Robotics' dual analysts has provided estimates out to 2025, which can be seen for 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.