EHang Holdings Ltd (NASDAQ:EH) saw its stock plummet 5.02% during Wednesday's intraday trading session, following a significant downgrade in analyst forecasts for the company. The negative sentiment stems from major revisions to the near-term outlook, particularly concerning revenue projections and expected losses.

Analysts have sharply cut their revenue estimates for EHang Holdings, now expecting revenues of CN¥518 million in 2025, down from the previous forecast of CN¥895 million. This revision, while still representing a 23% improvement from the last 12 months, signifies a substantial reduction in growth expectations. Moreover, the consensus now anticipates wider losses, with earnings per share (EPS) estimated at a loss of CN¥2.88, compared to the earlier projection of CN¥1.51 loss per share.

The downgrade has also impacted EHang's valuation outlook, with the consensus price target falling 9.9% to CN¥176. Despite the gloomy near-term forecast, it's worth noting that analysts still expect EHang's revenue growth to outpace the industry average, with a projected 52% annualized growth rate through 2025. However, investors appear to be focusing on the immediate challenges, as reflected in today's sharp stock price decline.