Celebrations may be in order for Shenzhen Overseas Chinese Town Co.,Ltd. (SZSE:000069) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 5.2% to CN¥2.64 over the past 7 days. Could this big upgrade push the stock even higher?

After the upgrade, the five analysts covering Shenzhen Overseas Chinese TownLtd are now predicting revenues of CN¥67b in 2024. If met, this would reflect a meaningful 16% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥54b of revenue in 2024. It looks like there's been a clear increase in optimism around Shenzhen Overseas Chinese TownLtd, given the chunky increase in revenue forecasts.

There was no particular change to the consensus price target of CN¥3.17, with Shenzhen Overseas Chinese TownLtd's latest outlook seemingly not enough to result in a change of valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Shenzhen Overseas Chinese TownLtd's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Shenzhen Overseas Chinese TownLtd is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Shenzhen Overseas Chinese TownLtd.

Need some more information? We have analyst estimates for Shenzhen Overseas Chinese TownLtd going out to 2026, and you can see them 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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