Yahoo Finance Hesai Group (NASDAQ:HSAI) Consensus Forecasts Have Become A Little Darker Since Its Latest Report
It's been a sad week for Hesai Group (NASDAQ:HSAI), who've watched their investment drop 12% to US$4.53 in the week since the company reported its first-quarter result. The results were positive, with revenue coming in at CN¥359m, beating analyst expectations by 6.5%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hesai Group after the latest results.
Check out our latest analysis for Hesai Group
After the latest results, the eight analysts covering Hesai Group are now predicting revenues of CN¥2.73b in 2024. If met, this would reflect a huge 51% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 38% to CN¥2.27. Before this latest report, the consensus had been expecting revenues of CN¥2.95b and CN¥1.75 per share in losses. So it's pretty clear the analysts have mixed opinions on Hesai Group after this update; revenues were downgraded and per-share losses expected to increase.
There was no major change to the consensus price target of US$11.00, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Hesai Group analyst has a price target of US$16.13 per share, while the most pessimistic values it at US$5.99. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Hesai Group's rate of growth is expected to accelerate meaningfully, with the forecast 73% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 44% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hesai Group to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Hesai Group. They also downgraded Hesai Group's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at US$11.00, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Hesai Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hesai Group analysts - going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Hesai Group you should be aware of.
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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.
