Some Analysts Just Cut Their CTBC Financial Holding Co., Ltd. (TWSE:2891) Estimates

Market forces rained on the parade of CTBC Financial Holding Co., Ltd. (TWSE:2891) 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.

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After the downgrade, the consensus from CTBC Financial Holding's seven analysts is for revenues of NT$222b in 2025, which would reflect a disturbing 51% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of NT$265b in 2025. The consensus view seems to have become more pessimistic on CTBC Financial Holding, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for CTBC Financial Holding

We'd point out that there was no major changes to their price target of NT$43.85, suggesting the latest estimates were not enough to shift their view on the value of the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 0.1% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 51% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to decline 5.3% annually. So it's pretty clear that CTBC Financial Holding sales are expected to decline at a faster rate than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for CTBC Financial Holding this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on CTBC Financial Holding after today.

Want more information? We have estimates for CTBC Financial Holding from its seven analysts out until 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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