Shareholders of Petpal Pet Nutrition Technology Co., Ltd. (SZSE:300673) will be pleased this week, given that the stock price is up 15% to CN¥15.98 following its latest third-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at CN¥477m, statutory earnings beat expectations by a notable 70%, coming in at CN¥0.23 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

After the latest results, the ten analysts covering Petpal Pet Nutrition Technology are now predicting revenues of CN¥2.31b in 2025. If met, this would reflect a major 27% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 12% to CN¥0.80. In the lead-up to this report, the analysts had been modelling revenues of CN¥2.31b and earnings per share (EPS) of CN¥0.77 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 9.2% to CN¥17.46, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Petpal Pet Nutrition Technology at CN¥20.50 per share, while the most bearish prices it at CN¥13.75. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Petpal Pet Nutrition Technology shareholders.

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. The analysts are definitely expecting Petpal Pet Nutrition Technology's growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Petpal Pet Nutrition Technology to grow faster than the wider 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 Petpal Pet Nutrition Technology following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Petpal Pet Nutrition Technology going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Petpal Pet Nutrition Technology's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.