Bullish: Analysts Just Made A Notable Upgrade To Their Shanghai Junshi Biosciences Co., Ltd. (HKG:1877) Forecasts

Shanghai Junshi Biosciences Co., Ltd. (HKG:1877) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

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Following the upgrade, the most recent consensus for Shanghai Junshi Biosciences from its three analysts is for revenues of CN¥2.7b in 2025 which, if met, would be a major 29% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 33% to CN¥0.84. Yet prior to the latest estimates, the analysts had been forecasting revenues of CN¥2.4b and losses of CN¥1.02 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Shanghai Junshi Biosciences

Despite these upgrades, the analysts have not made any major changes to their price target of CN¥14.86, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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 Shanghai Junshi Biosciences, with the most bullish analyst valuing it at CN¥17.56 and the most bearish at CN¥11.07 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Shanghai Junshi Biosciences' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 29% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.7% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 25% annually. So it looks like Shanghai Junshi Biosciences is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Shanghai Junshi Biosciences' prospects. They also upgraded their revenue forecasts, although the latest estimates suggest that Shanghai Junshi Biosciences will grow in line with the overall market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Shanghai Junshi Biosciences could be a good candidate for more research.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Shanghai Junshi Biosciences going out to 2027, 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 upgrading 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.