The latest analyst coverage could presage a bad day for Coastal Financial Corporation (NASDAQ:CCB), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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After this downgrade, Coastal Financial's four analysts are now forecasting revenues of US$629m in 2025. This would be a major 95% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 21% to US$3.89. Previously, the analysts had been modelling revenues of US$725m and earnings per share (EPS) of US$4.64 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.

Check out our latest analysis for Coastal Financial

Analysts made no major changes to their price target of US$109, suggesting the downgrades are not expected to have a long-term impact on Coastal Financial'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 Coastal Financial's past performance and to peers in the same industry. The analysts are definitely expecting Coastal Financial's growth to accelerate, with the forecast 144% annualised growth to the end of 2025 ranking favourably alongside historical growth of 36% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Coastal Financial to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Coastal Financial. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Coastal Financial.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Coastal Financial analysts - going out to 2026, and you can see them free on our platform here.

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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.