Some Aerospace CH UAV Co.,Ltd (SZSE:002389) Analysts Just Made A Major Cut To Next Year's Estimates

One thing we could say about the analysts on Aerospace CH UAV Co.,Ltd (SZSE:002389) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

After the downgrade, the three analysts covering Aerospace CH UAVLtd are now predicting revenues of CN¥3.3b in 2024. If met, this would reflect a substantial 21% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 240% to CN¥0.36. Prior to this update, the analysts had been forecasting revenues of CN¥3.9b and earnings per share (EPS) of CN¥0.42 in 2024. Indeed, we can see that the analysts are a lot more bearish about Aerospace CH UAVLtd's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Aerospace CH UAVLtd

It'll come as no surprise then, to learn that the analysts have cut their price target 25% to CN¥16.20.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Aerospace CH UAVLtd's rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aerospace CH UAVLtd is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Aerospace CH UAVLtd. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Aerospace CH UAVLtd 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 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.