These Analysts Just Made A Meaningful Downgrade To Their Pangang Group Vanadium & Titanium Resources Co., Ltd. (SZSE:000629) EPS Forecasts

Today is shaping up negative for Pangang Group Vanadium & Titanium Resources Co., Ltd. (SZSE:000629) 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.

After the downgrade, the three analysts covering Pangang Group Vanadium & Titanium Resources are now predicting revenues of CN¥15b in 2024. If met, this would reflect a satisfactory 5.9% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 23% to CN¥0.14. Before this latest update, the analysts had been forecasting revenues of CN¥17b and earnings per share (EPS) of CN¥0.20 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Pangang Group Vanadium & Titanium Resources

The consensus price target fell 14% to CN¥3.67, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pangang Group Vanadium & Titanium Resources' past performance and to peers in the same industry. The analysts are definitely expecting Pangang Group Vanadium & Titanium Resources' growth to accelerate, with the forecast 5.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Pangang Group Vanadium & Titanium Resources is expected to grow slower 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 Pangang Group Vanadium & Titanium Resources. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Pangang Group Vanadium & Titanium Resources analysts - going out to 2026, 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 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.