The latest analyst coverage could presage a bad day for LONGi Green Energy Technology Co., Ltd. (SHSE:601012), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.
After this downgrade, LONGi Green Energy Technology's 22 analysts are now forecasting revenues of CN¥156b in 2024. This would be a notable 15% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 6.9% to CN¥2.19. Before this latest update, the analysts had been forecasting revenues of CN¥175b and earnings per share (EPS) of CN¥2.61 in 2024. Indeed, we can see that the analysts are a lot more bearish about LONGi Green Energy Technology's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for LONGi Green Energy Technology
It'll come as no surprise then, to learn that the analysts have cut their price target 13% to CN¥31.51.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that LONGi Green Energy Technology's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 26% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than LONGi Green Energy Technology.
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. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of LONGi Green Energy Technology.
So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with LONGi Green Energy Technology, including concerns around earnings quality. Learn more, and discover the 1 other flag we've identified, for free on our platform here.
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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.