One Forecaster Is Now More Bearish On Shanghai MicuRx Pharmaceutical Co., Ltd. (SHSE:688373) Than They Used To Be

Market forces rained on the parade of Shanghai MicuRx Pharmaceutical Co., Ltd. (SHSE:688373) shareholders today, when the covering analyst downgraded their forecasts for this year. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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After the downgrade, the solo analyst covering Shanghai MicuRx Pharmaceutical is now predicting revenues of CN¥179m in 2025. If met, this would reflect a major 49% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 19% per share from last year to CN¥0.58 per share. However, before this estimates update, the consensus had been expecting revenues of CN¥251m and CN¥0.54 per share in losses. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

See our latest analysis for Shanghai MicuRx Pharmaceutical

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 49% growth on an annualised basis. That is in line with its 53% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 25% annually. So it's pretty clear that Shanghai MicuRx Pharmaceutical is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. While the analyst did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Shanghai MicuRx Pharmaceutical after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Shanghai MicuRx Pharmaceutical going out as far as 2027, 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 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.