Analysts Are More Bearish On Shenzhen Tagen Group Co., Ltd. (SZSE:000090) Than They Used To Be

The analysts covering Shenzhen Tagen Group Co., Ltd. (SZSE:000090) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the three analysts covering Shenzhen Tagen Group are now predicting revenues of CN¥21b in 2024. If met, this would reflect an okay 3.7% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 2.8% to CN¥0.46. Before this latest update, the analysts had been forecasting revenues of CN¥24b and earnings per share (EPS) of CN¥0.57 in 2024. Indeed, we can see that the analysts are a lot more bearish about Shenzhen Tagen Group's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Shenzhen Tagen Group

It'll come as no surprise then, to learn that the analysts have cut their price target 8.1% to CN¥4.56.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Shenzhen Tagen Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Shenzhen Tagen Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Shenzhen Tagen Group's revenues are expected to grow 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 Shenzhen Tagen Group.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Shenzhen Tagen Group analysts - going out to 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 with high insider ownership.

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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.