Analysts Covering Hyundai Amperex Technology Co., Ltd. (SZSE:300750) today significantly revised its statutory forecast for this year, resulting in negative news for shareholders. Earnings forecasts have been cut quite sharply, perhaps as a tacit admission that previous forecasts were too optimistic. With the stock price at CN181 reflecting a 15% increase over the past week, bidders are definitely looking at a different picture. With such a sharp rise, brokers may have realized something that the broader market hasn't priced in yet.

Following the latest downgrade, the current consensus from the 31 analysts covering Contemporary Amperex Technology is for revenue in 2024 of CA$397b, which is the highest growth rate in the past twelve months. -Reflects a 4.0% decrease in Amperex Technology sales. Prior to their latest forecasts, analysts had been forecasting sales of CA$473 billion in 2024. The consensus view on Contemporary Amperex Technology appears to have become more pessimistic, noting a significant decrease in revenue estimates in this update.

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SZSE:300750 Earnings and Revenue Growth March 17, 2024

Contemporary Amperex Technology's latest outlook doesn't appear to be sufficient to warrant a rating change, as there was no change to the consensus price target of 252CN.

Looking at the bigger picture here, one way to understand these forecasts is to see how they compare to past performance and industry growth forecasts. These estimates suggest that sales are expected to slow, with earnings expected to decline by 4.0% per year through the end of 2024. This represents a significant decrease from the annual growth rate of 56% over the past five years. By contrast, our data shows that other companies in the same industry (covered by analysts) are forecast to see their revenue grow at 19% per year for now. As such, revenues are expected to shrink, but there are no silver linings for this cloud. Contemporary Amperex Technology is expected to lag the rest of the industry.


What was clearly unclear was that analysts lowered their earnings forecasts for Contemporary Amperex Technology this year. They also expect the company's earnings to perform worse than the broader market. Overall, we should be a little more wary of Contemporary Amperex Technology going forward, given the significant downward revision to this year's forecasts.

Still have questions? We have 31 analysts' forecasts for Contemporary Amperex Technology to 2026, available for free on our platform here.

Of course, when looking at company management, invest a large amount of money Analyzing a stock is just as useful as knowing whether analysts are revising their estimates downward.So you can also search for this free A list of stocks that insiders are buying.

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Check out our comprehensive analysis, including below, to see if modern Amperex technology is potentially overvalued or undervalued. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

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