Some Beijing Sifang Automation Co.,Ltd (SHSE:601126) Analysts Just Made A Major Cut To Next Year's Estimates

The latest analyst coverage could presage a bad day for Beijing Sifang Automation Co.,Ltd (SHSE:601126), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the current consensus from Beijing Sifang AutomationLtd's seven analysts is for revenues of CN¥6.9b in 2024 which - if met - would reflect a solid 19% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥7.8b in 2024. The consensus view seems to have become more pessimistic on Beijing Sifang AutomationLtd, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Beijing Sifang AutomationLtd

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. The analysts are definitely expecting Beijing Sifang AutomationLtd's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Beijing Sifang AutomationLtd is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to grow at about the same rate as companies in the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Beijing Sifang AutomationLtd, and a few readers might choose to steer clear of the stock.

Of course, there's always more to the story. We have estimates for Beijing Sifang AutomationLtd from its seven analysts out until 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.