One TCL Electronics Holdings Limited (HKG:1070) Analyst Just Lifted Their Revenue Forecasts By A Notable 14%

Shareholders in TCL Electronics Holdings Limited (HKG:1070) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

Following the latest upgrade, TCL Electronics Holdings' one analyst currently expects revenues in 2021 to be HK$70b, approximately in line with the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of HK$61b in 2021. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

Check out our latest analysis for TCL Electronics Holdings

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that TCL Electronics Holdings' revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 9.9% 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 18% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than TCL Electronics Holdings.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at TCL Electronics Holdings.

Hungry for more information? We have estimates for TCL Electronics Holdings until 2023 from one covering analyst, 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.

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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.