AEON Credit Service (Asia) Company Limited's (HKG:900) Sole Analyst Just Made A Substantial Upgrade To Their Forecasts

AEON Credit Service (Asia) Company Limited (HKG:900) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After the upgrade, the lone analyst covering AEON Credit Service (Asia) is now predicting revenues of HK$1.8b in 2025. If met, this would reflect a major 50% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 26% to HK$1.18. Previously, the analyst had been modelling revenues of HK$1.6b and earnings per share (EPS) of HK$1.00 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for AEON Credit Service (Asia)

It will come as no surprise to learn that the analyst has increased their price target for AEON Credit Service (Asia) 6.2% to HK$13.00 on the back of these upgrades.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting AEON Credit Service (Asia)'s growth to accelerate, with the forecast 50% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that AEON Credit Service (Asia) is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, AEON Credit Service (Asia) could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for 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.