Analyst Forecasts Just Became More Bearish On CSI Solar Co., Ltd. (SHSE:688472)

One thing we could say about the analysts on CSI Solar Co., Ltd. (SHSE:688472) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 latest consensus from CSI Solar's six analysts is for revenues of CN¥61b in 2024, which would reflect a sizeable 25% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 29% to CN¥0.89. Previously, the analysts had been modelling revenues of CN¥59b and earnings per share (EPS) of CN¥0.92 in 2024. So it's pretty clear consensus is mixed on CSI Solar after the new consensus numbers; while the analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

See our latest analysis for CSI Solar

The consensus price target was unchanged at CN¥15.75, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

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 CSI Solar's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 25% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 5.0% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 23% per year. So while CSI Solar's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall 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. They also upgraded their revenue forecasts, although the latest estimates suggest that CSI Solar will grow in line with the overall market. Given the stark change in sentiment, we'd understand if investors became more cautious on CSI Solar after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple CSI Solar analysts - going out to 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.