The latest analyst coverage could presage a bad day for Metagenomi Therapeutics, Inc. (NASDAQ:MGX), 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.

Following the latest downgrade, the five analysts covering Metagenomi Therapeutics provided consensus estimates of US$7.7m revenue in 2026, which would reflect a substantial 43% decline on its sales over the past 12 months. Losses are forecast to narrow 5.3% to US$2.35 per share. However, before this estimates update, the consensus had been expecting revenues of US$10m and US$2.15 per share in losses. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past three years, revenues have declined around 21% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 68% decline in revenue until the end of 2026. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 23% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Metagenomi Therapeutics to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Metagenomi Therapeutics' revenues are expected to grow slower than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Metagenomi Therapeutics after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Metagenomi Therapeutics going out to 2028, 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 with high insider ownership.

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.