Celebrations may be in order for Pony Testing Co., Ltd. (SZSE:300887) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Pony Testing will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Pony Testing's four analysts is for revenues of CN¥2.9b in 2022 which - if met - would reflect a major 29% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CN¥2.6b of revenue in 2022. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

See our latest analysis for Pony Testing

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pony Testing's past performance and to peers in the same industry. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 41% growth on an annualised basis. That is in line with its 42% annual growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 23% annually. So although Pony Testing is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

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

Analysts are definitely bullish on Pony Testing, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 2 other warning signs we've identified, for 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.