Newsflash: MGI Tech Co., Ltd. (SHSE:688114) Analysts Have Been Trimming Their Revenue Forecasts

The latest analyst coverage could presage a bad day for MGI Tech Co., Ltd. (SHSE:688114), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the most recent consensus for MGI Tech from its eight analysts is for revenues of CN¥3.3b in 2024 which, if met, would be a meaningful 17% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥3.8b in 2024. It looks like forecasts have become a fair bit less optimistic on MGI Tech, given the measurable cut to revenue estimates.

Check out our latest analysis for MGI Tech

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that MGI Tech's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 23% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 22% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. So it looks like MGI Tech is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. 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 MGI Tech after today.

Still got questions? We have estimates for MGI Tech from its eight analysts out until 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.