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One Chico's FAS, Inc. (NYSE:CHS) Analyst Just Lifted Their Revenue Forecasts By A Captivating 21%

Chico's FAS, Inc. (NYSE:CHS) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Chico's FAS has also found favour with investors, with the stock up a notable 17% to US$6.30 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the latest consensus from Chico's FAS' solo analyst is for revenues of US$1.7b in 2022, which would reflect a substantial 22% improvement in sales compared to the last 12 months. Before the latest update, the analyst was foreseeing US$1.4b of revenue in 2022. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.

View our latest analysis for Chico's FAS

earnings-and-revenue-growth
earnings-and-revenue-growth

Additionally, the consensus price target for Chico's FAS increased 150% to US$5.63, showing a clear increase in optimism from the analyst involved.

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. For example, we noticed that Chico's FAS' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 30% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 11% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.7% per year. Not only are Chico's FAS' revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Chico's FAS this year. The analyst also expects revenues to grow faster than the wider market. There was also a nice increase in the price target, with the analyst apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Chico's FAS.

The covering analyst is definitely bullish on Chico's FAS, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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.

This article by Simply Wall St is general in nature. 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.

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

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