News Flash: Analysts Just Made A Sizeable Upgrade To Their Pop Mart International Group Limited (HKG:9992) Forecasts

Pop Mart International Group Limited (HKG:9992) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

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After the upgrade, the 29 analysts covering Pop Mart International Group are now predicting revenues of CN¥30b in 2025. If met, this would reflect a sizeable 130% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 196% to CN¥6.97. Before this latest update, the analysts had been forecasting revenues of CN¥25b and earnings per share (EPS) of CN¥5.04 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Pop Mart International Group

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.9% to CN¥272 per share. 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. The most optimistic Pop Mart International Group analyst has a price target of CN¥345 per share, while the most pessimistic values it at CN¥158. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The analysts are definitely expecting Pop Mart International Group's growth to accelerate, with the forecast 130% annualised growth to the end of 2025 ranking favourably alongside historical growth of 33% per annum 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 17% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Pop Mart International Group to grow faster than the wider 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Pop Mart International Group.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Pop Mart International Group going out to 2027, 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.