Today is shaping up negative for CGN Mining Company Limited (HKG:1164) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After this downgrade, CGN Mining's four analysts are now forecasting revenues of HK$6.2b in 2023. This would be a sizeable 48% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of HK$6.8b in 2023. It looks like forecasts have become a fair bit less optimistic on CGN Mining, given the measurable cut to revenue estimates.

Check out our latest analysis for CGN Mining

The consensus price target rose 6.6% to HK$1.50, with the analysts clearly more optimistic about CGN Mining's prospects following this update.

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 CGN Mining's growth to accelerate, with the forecast 48% annualised growth to the end of 2023 ranking favourably alongside historical growth of 24% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.0% per year. So it's clear with the acceleration in growth, CGN Mining is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to perform better than companies in the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of CGN Mining going forwards.

Of course, this isn't the full story. At least one of CGN Mining's four analysts has provided estimates out to 2025, which can be seen for 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.

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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.