FinVolution Group (NYSE:FINV) Analysts Are Pretty Bullish On The Stock After Recent Results

The investors in FinVolution Group's (NYSE:FINV) will be rubbing their hands together with glee today, after the share price leapt 28% to US$10.61 in the week following its annual results. FinVolution Group reported in line with analyst predictions, delivering revenues of CN¥13b and statutory earnings per share of CN¥9.03, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for FinVolution Group

Taking into account the latest results, the most recent consensus for FinVolution Group from six analysts is for revenues of CN¥14.6b in 2025. If met, it would imply a notable 11% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 12% to CN¥10.23. Before this earnings report, the analysts had been forecasting revenues of CN¥14.3b and earnings per share (EPS) of CN¥10.40 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 32% to US$9.92despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of FinVolution Group's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values FinVolution Group at US$13.19 per share, while the most bearish prices it at US$7.22. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that FinVolution Group's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. So it's pretty clear that, while FinVolution Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for FinVolution Group going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with FinVolution Group .

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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.