One thing we could say about the analysts on Zhejiang Qianjiang Motorcycle Co., Ltd. (SZSE:000913) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the three analysts covering Zhejiang Qianjiang Motorcycle are now predicting revenues of CN¥5.7b in 2023. If met, this would reflect a meaningful 8.3% improvement in sales compared to the last 12 months. Per-share earnings are expected to ascend 15% to CN¥0.91. Previously, the analysts had been modelling revenues of CN¥6.8b and earnings per share (EPS) of CN¥1.09 in 2023. Indeed, we can see that the analysts are a lot more bearish about Zhejiang Qianjiang Motorcycle's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Zhejiang Qianjiang Motorcycle

The consensus price target fell 10% to CN¥17.50, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Zhejiang Qianjiang Motorcycle's revenue growth is expected to slow, with the forecast 8.3% annualised growth rate until the end of 2023 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 20% per year. Factoring in the forecast slowdown in growth, it seems obvious that Zhejiang Qianjiang Motorcycle is also expected to grow slower than other industry participants.

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 Zhejiang Qianjiang Motorcycle.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Zhejiang Qianjiang Motorcycle analysts - going out to 2025, 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 that insiders are buying.

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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.