Shareholders in CSI Properties Limited (HKG:497) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from CSI Properties' single analyst is for revenues of HK$1.6b in 2024 which - if met - would reflect a substantial 78% increase on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of HK$1.4b in 2024. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.
Check out our latest analysis for CSI Properties
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CSI Properties' past performance and to peers in the same industry. For example, we noticed that CSI Properties' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 78% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 50% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 8.3% per year. So it looks like CSI Properties is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. The analyst also expects revenues to grow faster than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at CSI Properties.
The covering analyst is definitely bullish on CSI Properties, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. You can learn more, and discover the 2 other flags 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.