The latest analyst coverage could presage a bad day for Luk Fook Holdings (International) Limited (HKG:590), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After the downgrade, the consensus from Luk Fook Holdings (International)'s nine analysts is for revenues of HK$12b in 2025, which would reflect a perceptible 7.6% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of HK$15b in 2025. The consensus view seems to have become more pessimistic on Luk Fook Holdings (International), noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Luk Fook Holdings (International)

Notably, the analysts have cut their price target 12% to HK$17.46, suggesting concerns around Luk Fook Holdings (International)'s valuation.

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 15% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 6.4% 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 15% per year. It's pretty clear that Luk Fook Holdings (International)'s revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Luk Fook Holdings (International) this year. They're also anticipating slower revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Luk Fook Holdings (International) after today.

Of course, there's always more to the story. We have estimates for Luk Fook Holdings (International) from its nine analysts out until 2027, 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 with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.