Zhejiang Meida Industrial Co., Ltd. (SZSE:002677) Analysts Are More Bearish Than They Used To Be

The latest analyst coverage could presage a bad day for Zhejiang Meida Industrial Co., Ltd. (SZSE:002677), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the six analysts covering Zhejiang Meida Industrial are now predicting revenues of CN¥1.6b in 2024. If met, this would reflect a modest 2.2% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 4.9% to CN¥0.72. Before this latest update, the analysts had been forecasting revenues of CN¥2.0b and earnings per share (EPS) of CN¥0.87 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

Check out our latest analysis for Zhejiang Meida Industrial

It'll come as no surprise then, to learn that the analysts have cut their price target 8.0% to CN¥10.72.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 2.9% growth on an annualised basis. That is in line with its 3.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.8% per year. So it's pretty clear that Zhejiang Meida Industrial is expected to grow slower than similar companies in the same industry.

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 Zhejiang Meida Industrial's revenues are expected to grow slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Zhejiang Meida Industrial.

Worse yet, our risk analysis suggests that Zhejiang Meida Industrial may find it hard to maintain its dividend following these downgrades. For more information, you can click here to learn more about our dividend analysis and the 1 potential warning sign we've identified.

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.