Revenue Downgrade: Here's What Analysts Forecast For Pacific Textiles Holdings Limited (HKG:1382)

One thing we could say about the analysts on Pacific Textiles Holdings Limited (HKG:1382) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, Pacific Textiles Holdings' three analysts currently expect revenues in 2024 to be HK$5.0b, approximately in line with the last 12 months. Before the latest update, the analysts were foreseeing HK$6.3b of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Pacific Textiles Holdings, given the substantial drop in revenue estimates.

Check out our latest analysis for Pacific Textiles Holdings

The consensus price target fell 6.9% to HK$3.63, with the analysts clearly less optimistic about Pacific Textiles Holdings' valuation following this update. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Pacific Textiles Holdings, with the most bullish analyst valuing it at HK$4.90 and the most bearish at HK$2.90 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Pacific Textiles Holdings shareholders.

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. From these estimates it looks as though the analysts expect the years of declining sales to come to an end, given the flat revenue forecast out to 2024. That would be a definite improvement, given that the past five years have seen sales shrink 2.4% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 11% per year. Although Pacific Textiles Holdings' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Pacific Textiles Holdings this year. They're also anticipating slower revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Pacific Textiles Holdings going forwards.

Need some more information? We have estimates for Pacific Textiles Holdings from its three analysts out until 2026, and you can see them free on our platform here.

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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.