Downgrade: Here's How Analysts See BAIC BluePark New Energy Technology Co.,Ltd. (SHSE:600733) Performing In The Near Term

Today is shaping up negative for BAIC BluePark New Energy Technology Co.,Ltd. (SHSE:600733) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon. Shares are up 6.3% to CN¥7.30 in the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

Following the downgrade, the current consensus from BAIC BluePark New Energy TechnologyLtd's three analysts is for revenues of CN¥26b in 2024 which - if met - would reflect a major 95% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 19% per share from last year to CN¥0.81 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of CN¥40b and losses of CN¥0.36 per share in 2024. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for BAIC BluePark New Energy TechnologyLtd

The consensus price target was broadly unchanged at CN¥7.50, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation.

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. For example, we noticed that BAIC BluePark New Energy TechnologyLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 95% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 17% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 16% annually. Not only are BAIC BluePark New Energy TechnologyLtd's revenues expected to improve, it seems that the analysts are also expecting it to grow faster 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, although our data indicates revenues are expected to perform better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on BAIC BluePark New Energy TechnologyLtd after the downgrade.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with BAIC BluePark New Energy TechnologyLtd, including a short cash runway. For more information, you can click here to discover this and the 1 other flag 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.