Analysts cut Contemporary Amperex Technology’s revenue forecast by 16%.

TLDR:

• Analysts covering Contemporary Amperex Technology Co., Limited (SZSE:300750) have trimmed their revenue forecasts by 16%.
• Stock price has risen by 15% in the past week despite the revenue forecast cut.

The analysts revised their revenue estimates for Contemporary Amperex Technology, projecting a 4.0% decline in sales for 2024 compared to the previous year. This significant cut in revenue forecasts has led to a more pessimistic consensus view on the company. The company’s stock price has seen a recent increase, indicating a potential discrepancy between market sentiment and analyst forecasts.

Despite the downward revision in revenue estimates, the consensus price target for the stock has remained the same. Analysts expect Contemporary Amperex Technology’s revenue growth to lag behind the industry average, with a forecasted annualized revenue decline of 4.0% by the end of 2024. This paints a challenging outlook for the company going forward.

Overall, the analysts’ downgrade in revenue forecasts and expectations for underperformance compared to the wider market suggest a cautious stance on Contemporary Amperex Technology in the near term.