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One Analyst Thinks Jiayin Group Inc.'s (NASDAQ:JFIN) Revenues Are Under Threat

Simply Wall St
·3 min read

One thing we could say about the covering analyst on Jiayin Group Inc. (NASDAQ:JFIN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from Jiayin Group's solitary analyst is for revenues of CN¥1.7b in 2020, which would reflect a painful 36% decline in sales compared to the last year of performance. Prior to the latest estimates, the analyst was forecasting revenues of CN¥2.3b in 2020. The consensus view seems to have become more pessimistic on Jiayin Group, noting the sizeable cut to revenue estimates in this update.

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

The consensus price target fell 80% to US$2.40, with the analyst clearly less optimistic about Jiayin Group's valuation following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with the forecast 36% revenue decline a notable change from historical growth of 30% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.7% next year. It's pretty clear that Jiayin Group's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for Jiayin Group next year. They're also anticipating slower revenue growth than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Jiayin Group's future valuation. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Jiayin Group after today.

Hungry for more information? We have forecasts for Jiayin Group from one covering analyst, and you can see them 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.

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.