Cowell e Holdings Inc. (HKG:1415) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on Cowell e Holdings too, with the stock up 10% to HK$23.45 over the past week. Could this upgrade be enough to drive the stock even higher?
After this upgrade, Cowell e Holdings' nine analysts are now forecasting revenues of US$2.1b in 2024. This would be a huge 83% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$1.8b of revenue in 2024. It looks like there's been a clear increase in optimism around Cowell e Holdings, given the solid increase in revenue forecasts.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Cowell e Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 235% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 15% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cowell e Holdings 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. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Cowell e Holdings.
Thirsting for more data? We have analyst estimates for Cowell e Holdings 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 with high insider ownership.
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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.