Party Time: Brokers Just Made Major Increases To Their Zhongjin Gold Corp.,Ltd (SHSE:600489) Earnings Forecasts

Shareholders in Zhongjin Gold Corp.,Ltd (SHSE:600489) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the current consensus from Zhongjin GoldLtd's nine analysts is for revenues of CN¥71b in 2024 which - if met - would reflect a solid 16% increase on its sales over the past 12 months. Statutory earnings per share are presumed to expand 15% to CN¥0.76. Prior to this update, the analysts had been forecasting revenues of CN¥61b and earnings per share (EPS) of CN¥0.68 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Zhongjin GoldLtd

It will come as no surprise to learn that the analysts have increased their price target for Zhongjin GoldLtd 13% to CN¥14.76 on the back of these upgrades.

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. It's clear from the latest estimates that Zhongjin GoldLtd's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Zhongjin GoldLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Zhongjin GoldLtd.

Better yet, our automated discounted cash flow calculation (DCF) suggests Zhongjin GoldLtd could be moderately undervalued. You can learn more about our valuation methodology on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.