Yahoo Finance Analysts Just Slashed Their Niu Technologies (NASDAQ:NIU) EPS Numbers
The analysts covering Niu Technologies (NASDAQ:NIU) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the downgrade, the most recent consensus for Niu Technologies from its seven analysts is for revenues of CN¥4.9b in 2022 which, if met, would be a major 33% increase on its sales over the past 12 months. Statutory earnings per share are forecast to be CN¥2.89, approximately in line with the last 12 months. Prior to this update, the analysts had been forecasting revenues of CN¥5.6b and earnings per share (EPS) of CN¥4.13 in 2022. Indeed, we can see that the analysts are a lot more bearish about Niu Technologies' prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
See our latest analysis for Niu Technologies
It'll come as no surprise then, to learn that the analysts have cut their price target 13% to CN¥119. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Niu Technologies at CN¥33.64 per share, while the most bearish prices it at CN¥10.54. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 33% growth on an annualised basis. That is in line with its 28% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 21% per year. So it's pretty clear that Niu Technologies is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Niu Technologies. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Niu Technologies.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Niu Technologies going out to 2024, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.
