One thing we could say about the analysts on WeRide Inc. (NASDAQ:WRD) - 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. Bidders are definitely seeing a different story, with the stock price of US$9.44 reflecting a 14% rise in the past week. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.

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Following the downgrade, the current consensus from WeRide's three analysts is for revenues of CN¥620m in 2025 which - if met - would reflect a major 72% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 81% to CN¥1.69. Yet before this consensus update, the analysts had been forecasting revenues of CN¥776m and losses of CN¥1.59 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

Check out our latest analysis for WeRide NasdaqGM:WRD Earnings and Revenue Growth May 15th 2025

The consensus price target was broadly unchanged at CN¥152, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. 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. Currently, the most bullish analyst values WeRide at CN¥167 per share, while the most bearish prices it at CN¥139. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the WeRide's past performance and to peers in the same industry. The analysts are definitely expecting WeRide's growth to accelerate, with the forecast 72% annualised growth to the end of 2025 ranking favourably alongside historical growth of 13% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect WeRide to grow faster than the wider industry.

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The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at WeRide. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. 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 WeRide after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for WeRide going out to 2027, and you can see them free on our platform here.

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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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