Zhejiang Sunoren Solar Technology Co.,Ltd. (SHSE:603105) Analysts Are Reducing Their Forecasts For This Year

Market forces rained on the parade of Zhejiang Sunoren Solar Technology Co.,Ltd. (SHSE:603105) shareholders today, when the analysts downgraded their forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After this downgrade, Zhejiang Sunoren Solar TechnologyLtd's five analysts are now forecasting revenues of CN¥786m in 2024. This would be a notable 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 20% to CN¥0.52. Previously, the analysts had been modelling revenues of CN¥953m and earnings per share (EPS) of CN¥0.64 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

See our latest analysis for Zhejiang Sunoren Solar TechnologyLtd

It'll come as no surprise then, to learn that the analysts have cut their price target 14% to CN¥14.14.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Zhejiang Sunoren Solar TechnologyLtd's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum 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 23% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Zhejiang Sunoren Solar TechnologyLtd is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Zhejiang Sunoren Solar TechnologyLtd's revenues are expected to grow 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.

Worse, Zhejiang Sunoren Solar TechnologyLtd is labouring under a substantial debt burden, which - if today's forecasts prove accurate - the forecast downgrade could potentially exacerbate. You can learn more about our debt analysis for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.