These Analysts Just Made A Massive Downgrade To Their Baoji Titanium Industry Co., Ltd. (SHSE:600456) EPS Forecasts

Today is shaping up negative for Baoji Titanium Industry Co., Ltd. (SHSE:600456) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business. Surprisingly the share price has been buoyant, rising 11% to CN¥29.13 in the past 7 days. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.

After this downgrade, Baoji Titanium Industry's five analysts are now forecasting revenues of CN¥7.3b in 2024. This would be an okay 5.9% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 7.1% to CN¥1.22. Prior to this update, the analysts had been forecasting revenues of CN¥9.1b and earnings per share (EPS) of CN¥1.90 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Baoji Titanium Industry

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. We would highlight that Baoji Titanium Industry's revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Baoji Titanium 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 Baoji Titanium Industry. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Baoji Titanium Industry, and a few readers might choose to steer clear of the stock.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Baoji Titanium Industry 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 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.