Today is shaping up negative for Blink Charging Co. (NASDAQ:BLNK) shareholders, with the analysts delivering a substantial negative revision to next year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the seven analysts covering Blink Charging are now predicting revenues of US$170m in 2025. If met, this would reflect a major 22% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 69% to US$0.44. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$196m and losses of US$0.42 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for Blink Charging

The consensus price target fell 19% to US$4.06, implicitly signalling that lower earnings per share are a leading indicator for Blink Charging's valuation.

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 highlight that Blink Charging's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 63% 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) 8.6% per year. Even after the forecast slowdown in growth, it seems obvious that Blink Charging is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses next year, suggesting all may not be well at Blink Charging. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than 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. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Blink Charging going forwards.

There might be good reason for analyst bearishness towards Blink Charging, like major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 3 other risks we've identified.

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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.