Brokers improve their perspective on COSCO SHIPPING Holdings Co., Ltd. (HKG: 1919) with these new forecasts
The shareholders of COSCO SHIPPING Holdings Co., Ltd. (HKG: 1919) may be pleased to hear that analysts have just updated their near-term forecasts. Consensus estimates suggest that investors could expect a significant increase in statutory income and earnings per share, with analysts modeling a real improvement in the company’s performance.
After this upgrade, the seven analysts at COSCO SHIPPING Holdings now forecast CNN 278 billion in revenue in 2021. This would be a major improvement of 39% in sales from the past 12 months. Earnings per share are expected to jump 182% to CN ¥ 4.66. Previously, analysts modeled revenue of CN ¥ 251b and earnings per share (EPS) of CN ¥ 3.30 in 2021. There has been a marked improvement in perception recently, with analysts drastically increasing both earnings and estimates. of income.
See our latest review for COSCO SHIPPING Holdings
With these upgrades, we are not surprised to see that analysts have raised their price target by 26% to 15.80 CN share per share. The consensus price target is only an average of individual analysts’ targets, so it might be helpful to see the breadth of the range of underlying estimates. COSCO SHIPPING Holdings’ most optimistic analyst has a price target of CN 30.03 per share, while the most pessimistic puts it at CN 8.19. With such a wide range of price targets, analysts are almost certainly betting on a wide variety of outcomes for the underlying business. With that in mind, we wouldn’t rely too much on the consensus price target, as this is only an average and analysts clearly have deeply divergent views on the company.
Another way to view these estimates is in the context of the bigger picture, such as how the forecast compares to past performance and whether the forecast is more or less bullish relative to other companies in the industry. Analysts certainly expect growth from COSCO SHIPPING Holdings to accelerate, with an annualized growth forecast of 39% through the end of 2021 ranking favorably alongside historic growth of 22% per year over the course of the year. over the past five years. Compare that with other companies in the same industry, which are expected to experience a decline in revenue of 1.6% per year. It seems clear that under the brighter growth outlook, COSCO SHIPPING Holdings is expected to grow faster than the industry as a whole.
The bottom line
The most important thing for us to take away from these new estimates is that analysts have improved their earnings per share estimates, with an improvement in earnings power expected for this year. On the positive side, they’ve also increased their revenue estimates, and the company is expected to outperform the wider market. Given that the consensus seems almost universally bullish, with a substantial increase in expectations and a higher price target, COSCO SHIPPING Holdings may be worth investigating further.
Analysts are clearly in love with COSCO SHIPPING Holdings at the moment, but before diving in you should know that we have identified some red flags with the company, such as a weak balance sheet. For more information, you can click on our platform to learn more about this and the 3 other issues we have identified.
We also provide an overview of the compensation of the board of directors and CEO of COSCO SHIPPING Holdings and the length of their tenure in the company, and whether any insiders bought the shares, here.
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