Time To Worry? Analysts Just Downgraded Their Bio-Thera Solutions, Ltd. (SHSE:688177) Outlook

Today is shaping up negative for Bio-Thera Solutions, Ltd. (SHSE:688177) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from Bio-Thera Solutions' three analysts is for revenues of CN¥1.2b in 2024, which would reflect a major 48% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥1.3b of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Bio-Thera Solutions, given the measurable cut to revenue estimates.

Check out our latest analysis for Bio-Thera Solutions

Notably, the analysts have cut their price target 18% to CN¥31.00, suggesting concerns around Bio-Thera Solutions' valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bio-Thera Solutions' past performance and to peers in the same industry. It's clear from the latest estimates that Bio-Thera Solutions' rate of growth is expected to accelerate meaningfully, with the forecast 48% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 37% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 25% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bio-Thera Solutions is expected to grow much faster than its industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Bio-Thera Solutions this year. Analysts also expect revenues to grow faster than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Bio-Thera Solutions going forwards.

Looking to learn more? At least one of Bio-Thera Solutions' three analysts has provided estimates out to 2026, which can be seen for 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 with high insider ownership.

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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.