Stock Analysis

Growth Investors: Industry Analysts Just Upgraded Their Shenzhen KTC Technology Co., Ltd. (SZSE:001308) Revenue Forecasts By 13%

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Shenzhen KTC Technology Co., Ltd. (SZSE:001308) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The stock price has risen 5.7% to CN¥27.75 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the current consensus from Shenzhen KTC Technology's five analysts is for revenues of CN¥15b in 2024 which - if met - would reflect a major 39% increase on its sales over the past 12 months. Statutory earnings per share are presumed to climb 10% to CN¥2.20. Before this latest update, the analysts had been forecasting revenues of CN¥13b and earnings per share (EPS) of CN¥2.11 in 2024. Sentiment certainly seems to have improved in recent times, with a nice increase in revenue and a small lift in earnings per share estimates.

Check out our latest analysis for Shenzhen KTC Technology

SZSE:001308 Earnings and Revenue Growth April 14th 2024

It will come as no surprise to learn that the analysts have increased their price target for Shenzhen KTC Technology 13% to CN¥31.75 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Shenzhen KTC Technology's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Shenzhen KTC Technology is forecast to grow faster in the future than it has in the past, with revenues expected to display 39% annualised growth until the end of 2024. If achieved, this would be a much better result than the 15% annual decline over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 18% annually. Not only are Shenzhen KTC Technology's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Shenzhen KTC Technology.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Shenzhen KTC 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 that insiders are buying.

Valuation is complex, but we're helping make it simple.

Find out whether Shenzhen KTC Technology is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.