The latest analyst coverage could presage a bad day for DarioHealth Corp. (NASDAQ:DRIO), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, DarioHealth's four analysts are now forecasting revenues of US$22m in 2026. This would be a credible 3.1% improvement in sales compared to the last 12 months. Losses are supposed to balloon 459% to US$3.99 per share. Yet before this consensus update, the analysts had been forecasting revenues of US$26m and losses of US$3.96 per share in 2026. So there's definitely been a change in sentiment in this update, with the analysts administering a substantial haircut to this year's revenue estimates, while at the same time holding losses per share steady.

There was no real change to the consensus price target of US$14.50, suggesting that the revisions to revenue estimates are not expected to have a long-term impact on DarioHealth's valuation.

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. The analysts are definitely expecting DarioHealth's growth to accelerate, with the forecast 6.4% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 11% annually. So it's clear that despite the acceleration in growth, DarioHealth is expected to grow meaningfully slower than the industry average.

The Bottom Line

Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of DarioHealth going forwards.

That said, the analysts might have good reason to be negative on DarioHealth, given major dilution from new stock issuance in the past year. For more information, you can click here to discover this and the 2 other flags 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.