Market forces rained on the parade of Shanghai MicroPort MedBot (Group) Co., Ltd. (HKG:2252) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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Following the downgrade, the latest consensus from Shanghai MicroPort MedBot (Group)'s three analysts is for revenues of CN¥656m in 2025, which would reflect a huge 155% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 58% to CN¥0.27. Yet before this consensus update, the analysts had been forecasting revenues of CN¥872m and losses of CN¥0.24 per share in 2025. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for Shanghai MicroPort MedBot (Group)

There was no major change to the consensus price target of CN¥18.59, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Shanghai MicroPort MedBot (Group) analyst has a price target of CN¥26.75 per share, while the most pessimistic values it at CN¥13.84. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Shanghai MicroPort MedBot (Group)'s rate of growth is expected to accelerate meaningfully, with the forecast 155% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 80% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Shanghai MicroPort MedBot (Group) is expected to grow much faster than its industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Shanghai MicroPort MedBot (Group). While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Shanghai MicroPort MedBot (Group).

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Shanghai MicroPort MedBot (Group) analysts - going out to 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.

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