Yahoo Finance Analysts Have Just Cut Their Lufax Holding Ltd (NYSE:LU) Revenue Estimates By 0.2%
The analysts covering Lufax Holding Ltd (NYSE:LU) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the downgrade, the consensus from 17 analysts covering Lufax Holding is for revenues of CN¥43b in 2023, implying a substantial 30% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥43b in 2023. Overall it looks like Lufax Holding is performing in line with analyst expectations, given the analysts have updated their numbers and there's been no real change to this year's forecast following these updates.
View our latest analysis for Lufax Holding
We'd point out that there was no major changes to their price target of CN¥14.11, suggesting the latest estimates were not enough to shift their view on the value of the business. 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 Lufax Holding analyst has a price target of CN¥3.14 per share, while the most pessimistic values it at CN¥1.39. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 38% by the end of 2023. This indicates a significant reduction from annual growth of 11% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Lufax Holding is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that analysts reconfirmed their revenue estimates for this year, suggesting that the business is performing in line with market expectations. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Lufax Holding going forwards.
Thirsting for more data? At least one of Lufax Holding's 17 analysts has provided estimates out to 2025, which can be seen for 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.
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