Shanghai MicroPort MedBot (Group) Co., Ltd. (HKG:2252) Analysts Just Trimmed Their Revenue Forecasts By 58%

One thing we could say about the analysts on Shanghai MicroPort MedBot (Group) Co., Ltd. (HKG:2252) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. 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 most recent consensus for Shanghai MicroPort MedBot (Group) from its four analysts is for revenues of CN¥225m in 2024 which, if met, would be a sizeable 115% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥532m in 2024. The consensus view seems to have become more pessimistic on Shanghai MicroPort MedBot (Group), noting the sizeable cut to revenue estimates in this update.

See our latest analysis for Shanghai MicroPort MedBot (Group)

Notably, the analysts have cut their price target 23% to CN¥21.26, suggesting concerns around Shanghai MicroPort MedBot (Group)'s valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Shanghai MicroPort MedBot (Group), with the most bullish analyst valuing it at CN¥32.32 and the most bearish at CN¥13.95 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Shanghai MicroPort MedBot (Group)'shistorical trends, as the 115% annualised revenue growth to the end of 2024 is roughly in line with the 125% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 23% per year. So it's pretty clear that Shanghai MicroPort MedBot (Group) is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. 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 Shanghai MicroPort MedBot (Group) after today.

Unanswered questions? At least one of Shanghai MicroPort MedBot (Group)'s four analysts has provided estimates out to 2026, which can be seen for free 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.