Need To Know: Analysts Just Made A Substantial Cut To Their Bloomage BioTechnology Corporation Limited (SHSE:688363) Estimates

The latest analyst coverage could presage a bad day for Bloomage BioTechnology Corporation Limited (SHSE:688363), 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.

After this downgrade, Bloomage BioTechnology's 14 analysts are now forecasting revenues of CN¥6.1b in 2024. This would be a credible 5.4% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 38% to CN¥1.47. Before this latest update, the analysts had been forecasting revenues of CN¥6.8b and earnings per share (EPS) of CN¥1.75 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

Check out our latest analysis for Bloomage BioTechnology

It'll come as no surprise then, to learn that the analysts have cut their price target 11% to CN¥63.91.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Bloomage BioTechnology's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 27% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 24% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bloomage BioTechnology.

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 Bloomage BioTechnology. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Bloomage BioTechnology.

Unfortunately, by using these new estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Bloomage BioTechnology that suggests the company could be somewhat overvalued. Find out why, and see how we estimate the valuation for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.