Shareholders might have noticed that Bestechnic (Shanghai) Co., Ltd. (SHSE:688608) filed its first-quarter result this time last week. The early response was not positive, with shares down 6.9% to CN¥145 in the past week. Statutory earnings per share disappointed, coming in -39% short of expectations, at CN¥0.23. Fortunately revenue performance was a lot stronger at CN¥653m arriving 17% ahead of predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bestechnic (Shanghai) after the latest results.

Taking into account the latest results, the consensus forecast from Bestechnic (Shanghai)'s seven analysts is for revenues of CN¥3.14b in 2024. This reflects a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 70% to CN¥3.16. In the lead-up to this report, the analysts had been modelling revenues of CN¥3.00b and earnings per share (EPS) of CN¥2.78 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.8% to CN¥202per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bestechnic (Shanghai) at CN¥226 per share, while the most bearish prices it at CN¥180. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Bestechnic (Shanghai)'shistorical trends, as the 17% annualised revenue growth to the end of 2024 is roughly in line with the 17% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 22% per year. So it's pretty clear that Bestechnic (Shanghai) is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bestechnic (Shanghai) following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Bestechnic (Shanghai) going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Bestechnic (Shanghai)'s Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.