Analysts Just Made A Sizeable Upgrade To Their China International Capital Corporation Limited (HKG:3908) Forecasts

Shareholders in China International Capital Corporation Limited (HKG:3908) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

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After this upgrade, China International Capital's nine analysts are now forecasting revenues of CN¥28b in 2025. This would be a solid 16% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to expand 14% to CN¥1.66. Prior to this update, the analysts had been forecasting revenues of CN¥24b and earnings per share (EPS) of CN¥1.43 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for China International Capital

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.0% to CN¥21.65 per share. 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. Currently, the most bullish analyst values China International Capital at CN¥25.71 per share, while the most bearish prices it at CN¥16.79. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that China International Capital is forecast to grow faster in the future than it has in the past, with revenues expected to display 34% annualised growth until the end of 2025. If achieved, this would be a much better result than the 6.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.3% per year. So it looks like China International Capital is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at China International Capital.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for China International Capital going out to 2027, 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.