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Some Nanofilm Technologies International Limited (SGX:MZH) Analysts Just Made A Major Cut To Next Year's Estimates

Market forces rained on the parade of Nanofilm Technologies International Limited (SGX:MZH) 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.

Following the downgrade, the most recent consensus for Nanofilm Technologies International from its seven analysts is for revenues of S$204m in 2024 which, if met, would be a decent 16% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 610% to S$0.034. Prior to this update, the analysts had been forecasting revenues of S$234m and earnings per share (EPS) of S$0.052 in 2024. Indeed, we can see that the analysts are a lot more bearish about Nanofilm Technologies International's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Nanofilm Technologies International

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earnings-and-revenue-growth

It'll come as no surprise then, to learn that the analysts have cut their price target 13% to S$0.74.

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Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Nanofilm Technologies International's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.3% per annum 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 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nanofilm Technologies International to grow faster than the wider 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 Nanofilm Technologies International. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Nanofilm Technologies International.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Nanofilm Technologies International analysts - going out to 2026, 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 that insiders are buying.

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.