Upgrade: Analysts Just Made A Dazzling Increase To Their GigaCloud Technology Inc. (NASDAQ:GCT) Forecasts

Shareholders in GigaCloud Technology Inc. (NASDAQ:GCT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market may be pricing in some blue sky too, with the share price gaining 38% to US$13.39 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the three analysts covering GigaCloud Technology are now predicting revenues of US$899m in 2024. If met, this would reflect a substantial 54% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 35% to US$2.07. Previously, the analysts had been modelling revenues of US$690m and earnings per share (EPS) of US$1.86 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for GigaCloud Technology

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.1% to US$21.33 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. It's clear from the latest estimates that GigaCloud Technology's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 22% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that GigaCloud Technology is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, GigaCloud Technology could be worth investigating further.

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 GigaCloud Technology going out to 2025, and you can see them free on our platform here..

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.