News Flash: Analysts Just Made A Sizeable Upgrade To Their Baozun Inc. (NASDAQ:BZUN) Forecasts

Celebrations may be in order for Baozun Inc. (NASDAQ:BZUN) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the ten analysts covering Baozun are now predicting revenues of CN¥9.8b in 2023. If met, this would reflect a meaningful 17% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥8.9b of revenue in 2023. It looks like there's been a clear increase in optimism around Baozun, given the substantial gain in revenue forecasts.

Check out our latest analysis for Baozun

The consensus price target fell 7.9% to CN¥68.43, with the analysts clearly less optimistic about Baozun's valuation following this update. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Baozun analyst has a price target of CN¥40.40 per share, while the most pessimistic values it at CN¥4.26. 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 Baozun shareholders.

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 period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So it's pretty clear that Baozun is forecast to grow substantially faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Baozun this year. They're also forecasting more rapid revenue growth 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Baozun.

Unsatisfied? At least one of Baozun's ten analysts has provided estimates out to 2025, which can be seen for free on our platform here.

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.