AIMA Technology Group CO., LTD (SHSE:603529) Just Reported, And Analysts Assigned A CN¥40.19 Price Target

It's been a good week for AIMA Technology Group CO., LTD (SHSE:603529) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.9% to CN¥28.32. AIMA Technology Group reported in line with analyst predictions, delivering revenues of CN¥5.6b and statutory earnings per share of CN¥2.12, suggesting the business is executing well and in line with its plan. Following the result, the 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 the analysts have changed their mind on AIMA Technology Group after the latest results.

See our latest analysis for AIMA Technology Group

Taking into account the latest results, the current consensus from AIMA Technology Group's eight analysts is for revenues of CN¥23.7b in 2024. This would reflect a notable 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 11% to CN¥2.50. Before this earnings report, the analysts had been forecasting revenues of CN¥24.2b and earnings per share (EPS) of CN¥2.58 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target fell 5.9% to CN¥40.19, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values AIMA Technology Group at CN¥49.10 per share, while the most bearish prices it at CN¥36.35. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that AIMA Technology Group's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 14% p.a. 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AIMA Technology Group to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for AIMA Technology Group. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple AIMA Technology Group analysts - going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for AIMA Technology Group that we have uncovered.

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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.