Brokers Are Upgrading Their Views On Shenzhen Senior Technology Material Co., Ltd. (SZSE:300568) With These New Forecasts

Shareholders in Shenzhen Senior Technology Material Co., Ltd. (SZSE:300568) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from Shenzhen Senior Technology Material's ten analysts is for revenues of CN¥4.7b in 2024 which - if met - would reflect a sizeable 54% increase on its sales over the past 12 months. Per-share earnings are expected to surge 119% to CN¥0.82. Prior to this update, the analysts had been forecasting revenues of CN¥4.2b and earnings per share (EPS) of CN¥0.73 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.

View our latest analysis for Shenzhen Senior Technology Material

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CN¥14.28, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. The analysts are definitely expecting Shenzhen Senior Technology Material's growth to accelerate, with the forecast 78% annualised growth to the end of 2024 ranking favourably alongside historical growth of 36% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Shenzhen Senior Technology Material 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. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Shenzhen Senior Technology Material.

Analysts are definitely bullish on Shenzhen Senior Technology Material, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 3 other concerns we've identified, for free 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 with high insider ownership.

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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.

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