Analysts Just Published A Bright New Outlook For Motorcomm Electronic Technology Co., Ltd.'s (SHSE:688515)

Motorcomm Electronic Technology Co., Ltd. (SHSE:688515) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investors have been pretty optimistic on Motorcomm Electronic Technology too, with the stock up 16% to CN¥65.94 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, Motorcomm Electronic Technology's three analysts are now forecasting revenues of CN¥461m in 2024. This would be a sizeable 57% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 10% per share from last year to CN¥1.99 per share. However, before this estimates update, the consensus had been expecting revenues of CN¥412m and CN¥2.45 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

Check out our latest analysis for Motorcomm Electronic Technology

It will come as no surprise to learn that the analysts have increased their price target for Motorcomm Electronic Technology 48% to CN¥134 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. One thing stands out from these estimates, which is that Motorcomm Electronic Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 57% annualised growth until the end of 2024. If achieved, this would be a much better result than the 20% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 22% per year. So it looks like Motorcomm Electronic Technology is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Motorcomm Electronic Technology's prospects. 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 Motorcomm Electronic Technology.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Motorcomm Electronic Technology analysts - going out to 2026, and you can see them 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.