NEW YORK – Lufax Holding Ltd (NYSE:LU), a prominent player in the financial services sector, has encountered a notable shift in market expectations as analysts revise their forecasts, signaling mixed prospects for the company. The latest analysis indicates a significant downward adjustment in revenue projections for the year 2024, paired with an unexpected surge in earnings per share (EPS).
Detailed insights reveal that analysts have slashed the revenue estimate by a substantial 29%, now anticipating CN¥36 billion. This revision suggests an upcoming shrinkage in Lufax Holding’s revenue stream. Contrasting this outlook, the EPS forecast has been revised to reflect a dramatic 405% increase, reaching CN¥2.02.
The consensus price target for Lufax Holding’s shares has also been affected by these revisions, dropping 17% to CN¥9.24. This change reflects the analysts’ concerns regarding the company’s weaker earnings potential. Valuation estimates among analysts show a divergence of opinion, with the most optimistic valuation at CN¥11.30 per share and the most pessimistic at CN¥6.54 per share.
When placed against its industry counterparts, Lufax Holding is expected to face challenges keeping pace with market trends. Projections indicate that the company’s annual revenue will fall by 24% by the end of 2024, which is a significant deviation from its five-year growth rate of 6.6%. In stark contrast, other firms within the same industry are projected to see an average annual revenue growth of 11%.
The reassessment of Lufax Holding’s financial outlook comes amidst broader market performance considerations and deteriorating business conditions. As a result of these factors, analysts have taken a more conservative stance on both EPS and revenue estimates for the company moving forward.
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