Downgrade: Here's How Analysts See TaiDoc Technology Corporation (GTSM:4736) Performing In The Near Term

Market forces rained on the parade of TaiDoc Technology Corporation (GTSM:4736) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

After the downgrade, the consensus from TaiDoc Technology's twin analysts is for revenues of NT$5.4b in 2021, which would reflect a chunky 8.1% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to tumble 28% to NT$12.26 in the same period. Before this latest update, the analysts had been forecasting revenues of NT$6.2b and earnings per share (EPS) of NT$15.61 in 2021. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

Check out our latest analysis for TaiDoc Technology

It'll come as no surprise then, to learn that the analysts have cut their price target 6.5% to NT$209. 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 TaiDoc Technology, with the most bullish analyst valuing it at NT$222 and the most bearish at NT$196 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 8.1% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that TaiDoc Technology's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of TaiDoc Technology.

There might be good reason for analyst bearishness towards TaiDoc Technology, like dilutive stock issuance over the past year. Learn more, and discover the 1 other flag we've identified, for 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 that insiders are buying.

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This article by Simply Wall St is general in nature. 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.
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