Earnings Update: Here's Why Analysts Just Lifted Their Shanghai Milkground Food Tech Co., Ltd (SHSE:600882) Price Target To CN¥20.17

Investors in Shanghai Milkground Food Tech Co., Ltd (SHSE:600882) had a good week, as its shares rose 5.3% to close at CN¥21.04 following the release of its full-year results. It was a credible result overall, with revenues of CN¥4.8b and statutory earnings per share of CN¥0.23 both in line with analyst estimates, showing that Shanghai Milkground Food Tech is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for Shanghai Milkground Food Tech from six analysts is for revenues of CN¥5.41b in 2025. If met, it would imply a notable 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 84% to CN¥0.42. Before this earnings report, the analysts had been forecasting revenues of CN¥5.20b and earnings per share (EPS) of CN¥0.38 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.

See our latest analysis for Shanghai Milkground Food Tech

It will come as no surprise to learn that the analysts have increased their price target for Shanghai Milkground Food Tech 5.9% to CN¥20.17on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Shanghai Milkground Food Tech at CN¥20.28 per share, while the most bearish prices it at CN¥18.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Shanghai Milkground Food Tech'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.6% per year. It's clear that while Shanghai Milkground Food Tech's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Shanghai Milkground Food Tech following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Shanghai Milkground Food Tech will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Shanghai Milkground Food Tech going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.