Broker Revenue Forecasts For Kaspi.kz Joint Stock Company (LON:KSPI) Are Surging Higher

Shareholders in Kaspi.kz Joint Stock Company (LON:KSPI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Kaspi.kz will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 9.3% over the past week, closing at US$94.00. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the most recent consensus for Kaspi.kz from its five analysts is for revenues of ₸1.6t in 2023 which, if met, would be a reasonable 2.7% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing ₸1.4t of revenue in 2023. It looks like there's been a clear increase in optimism around Kaspi.kz, given the nice increase in revenue forecasts.

See our latest analysis for Kaspi.kz

There was no particular change to the consensus price target of ₸44,678, with Kaspi.kz's latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Kaspi.kz at ₸120 per share, while the most bearish prices it at ₸81.18. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Kaspi.kz's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 30% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that Kaspi.kz is also expected to grow slower than other industry participants.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Kaspi.kz this year. They're also anticipating slower revenue growth 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 Kaspi.kz.

Unanswered questions? At least one of Kaspi.kz's five analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.