Shareholders in Kindstar Globalgene Technology, Inc. (HKG:9960) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from Kindstar Globalgene Technology's two analysts is for revenues of CN¥1.2b in 2022 which - if met - would reflect a reasonable 3.3% increase on its sales over the past 12 months. Statutory earnings per share are supposed to sink 13% to CN¥0.097 in the same period. Prior to this update, the analysts had been forecasting revenues of CN¥1.1b and earnings per share (EPS) of CN¥0.087 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Kindstar Globalgene Technology

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CN¥3.03, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Kindstar Globalgene Technology at CN¥3.70 per share, while the most bearish prices it at CN¥3.30. This is a very narrow spread of estimates, implying either that Kindstar Globalgene Technology is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kindstar Globalgene Technology's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Kindstar Globalgene Technology's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 3.3% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past year. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 19% annually. Factoring in the forecast slowdown in growth, it seems obvious that Kindstar Globalgene Technology is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Kindstar Globalgene Technology.

Analysts are definitely bullish on Kindstar Globalgene Technology, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other warning sign 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.