Analysts Just Made A Notable Upgrade To Their Kindstar Globalgene Technology, Inc. (HKG:9960) Forecasts

Shareholders in Kindstar Globalgene Technology, Inc. (HKG:9960) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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 two analysts covering Kindstar Globalgene Technology are now predicting revenues of CN¥1.2b in 2022. If met, this would reflect a satisfactory 3.3% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to drop 13% to CN¥0.097 in the same period. Previously, the analysts had been modelling revenues of CN¥1.1b and earnings per share (EPS) of CN¥0.087 in 2022. 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 Kindstar Globalgene Technology

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CN¥3.03, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Kindstar Globalgene Technology, with the most bullish analyst valuing it at CN¥3.70 and the most bearish at CN¥3.30 per share. 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.

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. It's pretty clear that there is an expectation that Kindstar Globalgene Technology's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% per year. Factoring in the forecast slowdown in growth, it seems obvious that Kindstar Globalgene Technology is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Kindstar Globalgene Technology.

Analysts are definitely bullish on Kindstar Globalgene Technology, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 1 other flag we've identified, 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.