Party Time: Brokers Just Made Major Increases To Their JinkoSolar Holding Co., Ltd. (NYSE:JKS) Earnings Forecasts
JinkoSolar Holding Co., Ltd. (NYSE:JKS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. JinkoSolar Holding has also found favour with investors, with the stock up a notable 15% to US$47.04 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the most recent consensus for JinkoSolar Holding from its eight analysts is for revenues of CN¥101b in 2023 which, if met, would be a substantial 45% increase on its sales over the past 12 months. Per-share earnings are expected to jump 1,168% to CN¥49.33. Prior to this update, the analysts had been forecasting revenues of CN¥90b and earnings per share (EPS) of CN¥40.08 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for JinkoSolar Holding
Despite these upgrades, the analysts have not made any major changes to their price target of US$65.44, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values JinkoSolar Holding at US$94.42 per share, while the most bearish prices it at US$35.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that JinkoSolar Holding's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 19% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that JinkoSolar Holding is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to next year's earnings expectations, it might be time to take another look at JinkoSolar Holding.
Analysts are definitely bullish on JinkoSolar Holding, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other concerns we've identified, for free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.
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