New Forecasts: Here's What Analysts Think The Future Holds For C&D International Investment Group Limited (HKG:1908)

C&D International Investment Group Limited (HKG:1908) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from C&D International Investment Group's seven analysts is for revenues of CN¥147b in 2024, which would reflect a notable 9.1% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥132b of revenue in 2024. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

View our latest analysis for C&D International Investment Group

Notably, the analysts have cut their price target 13% to CN¥17.33, suggesting concerns around C&D International Investment Group'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 C&D International Investment Group, with the most bullish analyst valuing it at CN¥21.44 and the most bearish at CN¥13.78 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 C&D International Investment Group shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the C&D International Investment Group's past performance and to peers in the same industry. We would highlight that C&D International Investment Group's revenue growth is expected to slow, with the forecast 9.1% annualised growth rate until the end of 2024 being well below the historical 43% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% annually. So it's pretty clear that, while C&D International Investment Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for C&D International Investment Group this year. Analysts also expect revenues to grow faster 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at C&D International Investment Group.

Better yet, our automated discounted cash flow calculation (DCF) suggests C&D International Investment Group could be moderately undervalued. You can learn more about our valuation methodology 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.