News Flash: Analysts Just Made An Incredible Upgrade To Their GNI Group Ltd. (TSE:2160) Forecasts

GNI Group Ltd. (TSE:2160) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the latest consensus from GNI Group's sole analyst is for revenues of JP¥40b in 2024, which would reflect a substantial 52% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to descend 12% to JP¥143 in the same period. Prior to this update, the analyst had been forecasting revenues of JP¥29b and earnings per share (EPS) of JP¥37.00 in 2024. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

See our latest analysis for GNI Group

With these upgrades, we're not surprised to see that the analyst has lifted their price target 37% to JP¥4,100 per share.

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 GNI Group's growth to accelerate, with the forecast 52% annualised growth to the end of 2024 ranking favourably alongside historical growth of 30% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect GNI Group 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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at GNI Group.

The covering analyst is clearly in love with GNI Group at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other risk we've identified .

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.