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This Analyst Just Made A Massive Upgrade To Their Kelly Partners Group Holdings Limited (ASX:KPG) Earnings Forecasts

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·3 min read
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Kelly Partners Group Holdings Limited (ASX:KPG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market may be pricing in some blue sky too, with the share price gaining 17% to AU$5.05 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

After this upgrade, Kelly Partners Group Holdings' solo analyst is now forecasting revenues of AU$79m in 2023. This would be a meaningful 17% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 37% to AU$0.17. Before this latest update, the analyst had been forecasting revenues of AU$71m and earnings per share (EPS) of AU$0.076 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

See our latest analysis for Kelly Partners Group Holdings


It will come as no surprise to learn that the analyst has increased their price target for Kelly Partners Group Holdings 9.3% to AU$4.70 on the back of these upgrades.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting Kelly Partners Group Holdings' growth to accelerate, with the forecast 17% annualised growth to the end of 2023 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Kelly Partners Group Holdings to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst 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 Kelly Partners Group Holdings.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Kelly Partners Group Holdings going out as far as 2025, and you can see them free on our platform here.

You can also see our analysis of Kelly Partners Group Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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