CSI Solar Co., Ltd. (SHSE:688472) 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 CSI Solar will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from CSI Solar's six analysts is for revenues of CN¥55b in 2024 which - if met - would reflect a solid 12% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CN¥56b of revenue in 2024. The forecasts seem less optimistic overall, with the modest decline in revenue estimates in the latest consensus update.

There was no particular change to the consensus price target of CN¥14.05, with CSI Solar's latest outlook seemingly not enough to result in a change of valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CSI Solar's past performance and to peers in the same industry. For example, we noticed that CSI Solar's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 27% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 5.0% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 22% annually. So while CSI Solar's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for CSI Solar this year. They're also forecasting for revenues to grow at about the same rate as companies in the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at CSI Solar.

Analysts are definitely bullish on CSI Solar, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 1 other warning sign 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 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.