VSTECS Holdings Limited (HKG:856) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that VSTECS Holdings will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 7.8% over the past week, closing at HK$6.78. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the five analysts covering VSTECS Holdings are now predicting revenues of HK$102b in 2025. If met, this would reflect a notable 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 26% to HK$0.93. Before this latest update, the analysts had been forecasting revenues of HK$90b and earnings per share (EPS) of HK$0.85 in 2025. The forecasts seem more optimistic now, with a solid increase in revenue and a small lift in earnings per share estimates.

Check out our latest analysis for VSTECS Holdings

With these upgrades, we're not surprised to see that the analysts have lifted their price target 16% to HK$7.01 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the VSTECS Holdings' past performance and to peers in the same industry. It's clear from the latest estimates that VSTECS Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.1% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. VSTECS Holdings is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at VSTECS Holdings.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple VSTECS Holdings analysts - going out to 2027, 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 with high insider ownership.

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