The Beijing Airdoc Technology Co., Ltd. (HKG:2251) Analysts Have Been Trimming Their Sales Forecasts

Market forces rained on the parade of Beijing Airdoc Technology Co., Ltd. (HKG:2251) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the most recent consensus for Beijing Airdoc Technology from its four analysts is for revenues of CN¥188m in 2022 which, if met, would be a sizeable 83% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥214m in 2022. The consensus view seems to have become more pessimistic on Beijing Airdoc Technology, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Beijing Airdoc Technology

The consensus price target fell 18% to CN¥33.38, with the analysts clearly less optimistic about Beijing Airdoc Technology's valuation following this update. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Beijing Airdoc Technology, with the most bullish analyst valuing it at CN¥52.17 and the most bearish at CN¥22.50 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Beijing Airdoc Technology's growth to accelerate, with the forecast 83% annualised growth to the end of 2022 ranking favourably alongside historical growth of 14% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Beijing Airdoc Technology to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Beijing Airdoc Technology after today.

Unanswered questions? At least one of Beijing Airdoc Technology's four analysts has provided estimates out to 2024, which can be seen for 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.