Just In: One Analyst Has Become A Lot More Bullish On Zepp Health Corporation's (NYSE:ZEPP) Earnings

Zepp Health Corporation (NYSE:ZEPP) 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. Zepp Health has also found favour with investors, with the stock up a remarkable 18% to US$40.02 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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After the upgrade, the lone analyst covering Zepp Health is now predicting revenues of US$237m in 2025. If met, this would reflect a solid 19% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 98% to US$0.12 per share. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$213m and losses of US$0.14 per share in 2025. 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.

Check out our latest analysis for Zepp Health

The consensus price target rose 389% to US$60.23, with the analyst encouraged by the higher revenue and lower forecast losses for this year.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Zepp Health is forecast to grow faster in the future than it has in the past, with revenues expected to display 19% annualised growth until the end of 2025. If achieved, this would be a much better result than the 33% 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 8.1% annually. Not only are Zepp Health's 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 Zepp Health's prospects. They also upgraded their revenue estimates for this 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, Zepp Health 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 least one analyst has provided forecasts out to 2026, 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 backed by insiders.

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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.