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Analysts Have Been Trimming Their Jiayin Group Inc. (NASDAQ:JFIN) Price Target After Its Latest Report

Simply Wall St
·3 mins read

It's been a mediocre week for Jiayin Group Inc. (NASDAQ:JFIN) shareholders, with the stock dropping 14% to US$2.30 in the week since its latest third-quarter results. It was a negative result overall, with revenues coming in 15% less than what the analyst expected, at CN¥511m. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

View our latest analysis for Jiayin Group

NasdaqGM:JFIN Past and Future Earnings April 4th 2020
NasdaqGM:JFIN Past and Future Earnings April 4th 2020

After the latest results, the consensus from Jiayin Group's solitary analyst is for revenues of CN¥1.67b in 2020, which would reflect a painful 25% decline in sales compared to the last year of performance. Prior to the latest earnings, the analyst was forecasting revenues of CN¥2.34b in 2020, and did not provide an earnings per share estimate. The consensus view seems to have become more pessimistic on Jiayin Group, noting the pretty serious reduction to revenue estimates following last week's results.

Intriguingly,the analyst has cut their price target 80% to US$2.40 showing a clear decline in sentiment around Jiayin Group's valuation.

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. We would highlight that sales are expected to reverse, with the forecast 25% revenue decline a notable change from historical growth of 23% 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 9.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Jiayin Group is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

One Jiayin Group broker/analyst has provided estimates out to 2020, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Jiayin Group you should be aware of.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.