Need To Know: Analysts Are Much More Bullish On MINISO Group Holding Limited (NYSE:MNSO) Revenues
MINISO Group Holding Limited (NYSE:MNSO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on MINISO Group Holding too, with the stock up 13% to US$20.67 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After the upgrade, the 13 analysts covering MINISO Group Holding are now predicting revenues of CN¥16b in 2024. If met, this would reflect a meaningful 19% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CN¥12b of revenue in 2024. It looks like there's been a clear increase in optimism around MINISO Group Holding, given the chunky increase in revenue forecasts.
View our latest analysis for MINISO Group Holding
There was no particular change to the consensus price target of CN¥200, with MINISO Group Holding's latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on MINISO Group Holding, with the most bullish analyst valuing it at CN¥229 and the most bearish at CN¥160 per share. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting MINISO Group Holding's growth to accelerate, with the forecast 19% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MINISO Group Holding 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 lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at MINISO Group Holding.
Unsatisfied? At least one of MINISO Group Holding's 13 analysts has provided estimates out to 2026, which can be seen for 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 that insiders are buying.
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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.
