TaiMed Biologics Inc. (GTSM:4147) Analysts Just Trimmed Their Revenue Forecasts By 18%

The latest analyst coverage could presage a bad day for TaiMed Biologics Inc. (GTSM:4147), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the three analysts covering TaiMed Biologics are now predicting revenues of NT$1.1b in 2021. If met, this would reflect a substantial 44% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of NT$1.4b in 2021. The consensus view seems to have become more pessimistic on TaiMed Biologics, noting the measurable cut to revenue estimates in this update.

View our latest analysis for TaiMed Biologics

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TaiMed Biologics' past performance and to peers in the same industry. We would highlight that TaiMed Biologics' revenue growth is expected to slow, with the forecast 34% annualised growth rate until the end of 2021 being well below the historical 86% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 72% per year. Factoring in the forecast slowdown in growth, it seems obvious that TaiMed Biologics is also expected to grow slower than other industry participants.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for TaiMed Biologics next year. They're also anticipating slower revenue growth than 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 TaiMed Biologics after today.

Want more information? At least one of TaiMed Biologics' three analysts has provided estimates out to 2022, which can be seen 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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