There's been a major selloff in Greenbrook TMS Inc. (TSE:GTMS) shares in the week since it released its annual report, with the stock down 25% to CA$1.80. Overall the results were a little better than analysts were expecting, with revenues beating forecasts by 3.4%to hit US$36m. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on Greenbrook TMS after the latest results.

View our latest analysis for Greenbrook TMS

TSX:GTMS Past and Future Earnings, March 13th 2020

Taking into account the latest results, the current consensus from Greenbrook TMS's four analysts is for revenues of US$56.9m in 2020, which would reflect a sizeable 59% increase on its sales over the past 12 months. Prior to the latest earnings, analysts were forecasting revenues of US$58.1m in 2020, and did not provide an EPS estimate. The consensus seems a bit less optimistic overall, with the revenue forecasts following the latest results.

Intriguingly, analysts have cut their price target 5.3% to US$2.68 showing a clear decline in sentiment around Greenbrook TMS's valuation. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Greenbrook TMS, with the most bullish analyst valuing it at US$3.09 and the most bearish at US$2.18 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. Analysts are definitely expecting Greenbrook TMS's growth to accelerate, with the forecast 59% growth ranking favourably alongside historical growth of 45% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Greenbrook TMS to grow faster than the wider market.

The most important thing to take away from these updates is that analysts are definitely optimistic on the business, given that they've begun forecasting positive per-share earnings for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider market. Analysts also downgraded their price target, suggesting that the latest news has led analysts to become more pessimistic about the intrinsic value of the business.

We have estimates for Greenbrook TMS from its four analysts , and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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US$2.68: That's What Analysts Think Greenbrook TMS Inc. Is Worth After Its Latest Results - Yahoo Finance