Cowell e Holdings Inc. (HKG:1415) 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 Cowell e 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 5.9% over the past week, closing at HK$30.45. Could this big upgrade push the stock even higher?
Following the upgrade, the current consensus from Cowell e Holdings' eight analysts is for revenues of US$3.6b in 2025 which - if met - would reflect a sizeable 45% increase on its sales over the past 12 months. Per-share earnings are expected to leap 60% to US$0.22. Prior to this update, the analysts had been forecasting revenues of US$3.3b and earnings per share (EPS) of US$0.21 in 2025. Sentiment certainly seems to have improved in recent times, with a solid increase in revenue and a slight bump in earnings per share estimates.
View our latest analysis for Cowell e Holdings
With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to US$5.10 per 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. The most optimistic Cowell e Holdings analyst has a price target of US$6.18 per share, while the most pessimistic values it at US$4.37. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Cowell e Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 22% 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 upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Cowell e Holdings.
Still, 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 Cowell e Holdings going out to 2027, and you can see them free on our 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.