Celebrations may be in order for Perfect Medical Health Management Limited (HKG:1830) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the latest consensus from Perfect Medical Health Management's solo analyst is for revenues of HK$2.0b in 2023, which would reflect a major 49% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 68% to HK$0.41. Prior to this update, the analyst had been forecasting revenues of HK$1.6b and earnings per share (EPS) of HK$0.28 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for Perfect Medical Health Management

With these upgrades, we're not surprised to see that the analyst has lifted their price target 42% to HK$11.90 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Perfect Medical Health Management's growth to accelerate, with the forecast 49% annualised growth to the end of 2023 ranking favourably alongside historical growth of 9.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Perfect Medical Health Management is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. 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, Perfect Medical Health Management could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts 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.