One thing we could say about the analysts on Seer, Inc. (NASDAQ:SEER) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the current consensus, from the three analysts covering Seer, is for revenues of US$14m in 2024, which would reflect a measurable 5.4% reduction in Seer's sales over the past 12 months. Before the latest update, the analysts were foreseeing US$17m of revenue in 2024. The consensus view seems to have become more pessimistic on Seer, noting the substantial drop in revenue estimates in this update.

Notably, the analysts have cut their price target 57% to US$3.00, suggesting concerns around Seer's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Seer's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 11% by the end of 2024. This indicates a significant reduction from annual growth of 37% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Seer is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Seer this year. They also expect company revenue to perform worse 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 Seer's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Seer going forwards.

Of course, there's always more to the story. We have estimates for Seer from its three analysts out until 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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