Growth Investors: Industry Analysts Just Upgraded Their Suzhou Recodeal Interconnect System Co.,Ltd (SHSE:688800) Revenue Forecasts By 11%

Celebrations may be in order for Suzhou Recodeal Interconnect System Co.,Ltd (SHSE:688800) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 7.4% to CN¥31.10 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the most recent consensus for Suzhou Recodeal Interconnect SystemLtd from its seven analysts is for revenues of CN¥2.1b in 2024 which, if met, would be a sizeable 25% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CN¥1.9b in 2024. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

See our latest analysis for Suzhou Recodeal Interconnect SystemLtd

We'd point out that there was no major changes to their price target of CN¥39.21, suggesting the latest estimates were not enough to shift their view on the value of the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Suzhou Recodeal Interconnect SystemLtd'shistorical trends, as the 35% annualised revenue growth to the end of 2024 is roughly in line with the 29% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Suzhou Recodeal Interconnect SystemLtd is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Suzhou Recodeal Interconnect SystemLtd this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Suzhou Recodeal Interconnect SystemLtd.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential concern with Suzhou Recodeal Interconnect SystemLtd, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.