The Kelly Partners Group Holdings Limited (ASX:KPG) Analyst Just Boosted Their Forecasts By A Captivating Amount

Kelly Partners Group Holdings Limited (ASX:KPG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Kelly Partners Group Holdings has also found favour with investors, with the stock up a worthy 17% to AU$5.05 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Kelly Partners Group Holdings' lone analyst is for revenues of AU$79m in 2023 which - if met - would reflect a decent 17% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 37% to AU$0.17. Previously, the analyst had been modelling revenues of AU$71m and earnings per share (EPS) of AU$0.076 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Kelly Partners Group Holdings

It will come as no surprise to learn that the analyst has increased their price target for Kelly Partners Group Holdings 9.3% to AU$4.70 on the back of these upgrades.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Kelly Partners Group Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Kelly Partners Group Holdings to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Kelly Partners Group Holdings could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You can also see our analysis of Kelly Partners Group Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.