This Analyst Just Wrote A Brand New Outlook For Studio City International Holdings Limited's (NYSE:MSC) Business

Celebrations may be in order for Studio City International Holdings Limited (NYSE:MSC) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Studio City International Holdings' solitary analyst is now forecasting revenues of US$358m in 2023. This would be a substantial improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 24% to US$1.29. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$203m and losses of US$1.97 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Studio City International Holdings

The consensus price target rose 21% to US$7.50, with the analyst encouraged by the higher revenue and lower forecast losses for this year.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Studio City International Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 25x annualised growth until the end of 2023. If achieved, this would be a much better result than the 44% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are Studio City International Holdings' revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analyst reduced their loss per share estimates for this year, reflecting increased optimism around Studio City International Holdings' prospects. 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, Studio City International Holdings could be worth investigating further.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential warning signs with Studio City International Holdings, including major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 3 other warning signs we've identified .

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.