What Does The Future Hold For Weaver Network Technology Co., Ltd. (SHSE:603039)? These Analysts Have Been Cutting Their Estimates

Market forces rained on the parade of Weaver Network Technology Co., Ltd. (SHSE:603039) shareholders today, when the analysts downgraded their forecasts for this year. 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 current consensus from Weaver Network Technology's six analysts is for revenues of CN¥2.6b in 2024 which - if met - would reflect a notable 10% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥3.1b in 2024. The consensus view seems to have become more pessimistic on Weaver Network Technology, noting the measurable cut to revenue estimates in this update.

View our latest analysis for Weaver Network Technology

The consensus price target fell 13% to CN¥41.81, with the analysts clearly less optimistic about Weaver Network Technology's valuation following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Weaver Network Technology's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 21% per year. Factoring in the forecast slowdown in growth, it seems obvious that Weaver Network Technology is also expected to grow slower than other industry participants.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Weaver Network Technology this year. They also expect company revenue to perform worse than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Weaver Network Technology's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Weaver Network Technology going forwards.

Of course, there's always more to the story. We have estimates for Weaver Network Technology from its six analysts out until 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.