Analysts Just Made A Major Revision To Their Titan Wind Energy (Suzhou) Co.,Ltd (SZSE:002531) Revenue Forecasts

The latest analyst coverage could presage a bad day for Titan Wind Energy (Suzhou) Co.,Ltd (SZSE:002531), 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 the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the most recent consensus for Titan Wind Energy (Suzhou)Ltd from its seven analysts is for revenues of CN¥10b in 2025 which, if met, would be a sizeable 109% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 306% to CN¥0.83. Before this latest update, the analysts had been forecasting revenues of CN¥11b and earnings per share (EPS) of CN¥0.85 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a small dip in earnings per share numbers as well.

View our latest analysis for Titan Wind Energy (Suzhou)Ltd

The consensus price target fell 7.9% to CN¥10.80, with the weaker earnings outlook clearly leading analyst valuation estimates.

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 Titan Wind Energy (Suzhou)Ltd's growth to accelerate, with the forecast 80% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Titan Wind Energy (Suzhou)Ltd to grow faster than the wider industry.

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 Titan Wind Energy (Suzhou)Ltd. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Titan Wind Energy (Suzhou)Ltd after today.

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 Titan Wind Energy (Suzhou)Ltd analysts - going out to 2026, and you can see them free on our platform here.

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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.