Analysts Are Betting On Wuxi Autowell Technology Co.,Ltd. (SHSE:688516) With A Big Upgrade This Week

Wuxi Autowell Technology Co.,Ltd. (SHSE:688516) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 5.4% to CN¥110 over the past 7 days. Could this big upgrade push the stock even higher?

Following the upgrade, the latest consensus from Wuxi Autowell TechnologyLtd's ten analysts is for revenues of CN¥10b in 2024, which would reflect a huge 64% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 54% to CN¥8.64. Prior to this update, the analysts had been forecasting revenues of CN¥9.3b and earnings per share (EPS) of CN¥8.27 in 2024. The most recent forecasts are noticeably more optimistic, with a substantial gain in revenue estimates and a lift to earnings per share as well.

See our latest analysis for Wuxi Autowell TechnologyLtd

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CN¥135, 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 Wuxi Autowell TechnologyLtd's growth to accelerate, with the forecast 64% annualised growth to the end of 2024 ranking favourably alongside historical growth of 46% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 23% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Wuxi Autowell TechnologyLtd 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Wuxi Autowell TechnologyLtd.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential concern with Wuxi Autowell TechnologyLtd, including concerns around earnings quality. You can learn more, and discover the 1 other concern 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 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.