New Forecasts: Here's What One Analyst Thinks The Future Holds For Wasion Holdings Limited (HKG:3393)

Celebrations may be in order for Wasion Holdings Limited (HKG:3393) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst has sharply increased their revenue numbers, with a view that Wasion Holdings will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 5.2% to HK$3.42 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from Wasion Holdings' lone analyst is for revenues of CN¥6.8b in 2023, which would reflect a meaningful 17% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 21% to CN¥0.39. Previously, the analyst had been modelling revenues of CN¥5.9b and earnings per share (EPS) of CN¥0.36 in 2023. Sentiment certainly seems to have improved in recent times, with a nice increase in revenue and a modest lift to earnings per share estimates.

See our latest analysis for Wasion Holdings

It will come as no surprise to learn that the analyst has increased their price target for Wasion Holdings 7.1% to CN¥3.77 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Wasion Holdings' growth to accelerate, with the forecast 17% annualised growth to the end of 2023 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Wasion Holdings to grow faster than the wider 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Wasion Holdings.

Better yet, our automated discounted cash flow calculation (DCF) suggests Wasion Holdings could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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.