Dizal (Jiangsu) Pharmaceutical Co., Ltd. (SHSE:688192) Analysts Just Slashed This Year's Revenue Estimates By 12%

One thing we could say about the analysts on Dizal (Jiangsu) Pharmaceutical Co., Ltd. (SHSE:688192) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. The stock price has risen 4.8% to CN¥45.05 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

Following the downgrade, the latest consensus from Dizal (Jiangsu) Pharmaceutical's three analysts is for revenues of CN¥430m in 2024, which would reflect a major 149% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 41% to CN¥1.56. However, before this estimates update, the consensus had been expecting revenues of CN¥490m and CN¥1.56 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

See our latest analysis for Dizal (Jiangsu) Pharmaceutical

The consensus price target was broadly unchanged at CN¥54.00, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast sales this year.

The Bottom Line

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 Dizal (Jiangsu) Pharmaceutical after today.

That said, the analysts might have good reason to be negative on Dizal (Jiangsu) Pharmaceutical, given a short cash runway. For more information, you can click here to discover this and the 1 other risk we've identified.

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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