Need To Know: The Consensus Just Cut Its Nanjing Iron & Steel Co., Ltd. (SHSE:600282) Estimates For 2025

The latest analyst coverage could presage a bad day for Nanjing Iron & Steel Co., Ltd. (SHSE:600282), 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.

After this downgrade, Nanjing Iron & Steel's three analysts are now forecasting revenues of CN¥66b in 2025. This would be a modest 7.0% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 6.4% to CN¥0.39. Before this latest update, the analysts had been forecasting revenues of CN¥81b and earnings per share (EPS) of CN¥0.42 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a measurable cut to revenue estimates and a minor downgrade to earnings per share numbers as well.

See our latest analysis for Nanjing Iron & Steel

The average price target climbed 9.7% to CN¥6.76 despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nanjing Iron & Steel's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.0% growth on an annualised basis. That is in line with its 6.4% 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 10% per year. So it's pretty clear that Nanjing Iron & Steel 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. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. 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 Nanjing Iron & Steel 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 Nanjing Iron & Steel analysts - going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.