Genertec Universal Medical Group Company Limited (HKG:2666) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Genertec Universal Medical Group's three analysts is for revenues of CN¥9.1b in 2020 which - if met - would reflect a substantial 33% increase on its sales over the past 12 months. Statutory earnings per share are presumed to increase 8.3% to CN¥1.06. Before this latest update, the analysts had been forecasting revenues of CN¥7.8b and earnings per share (EPS) of CN¥1.07 in 2020. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

View our latest analysis for Genertec Universal Medical Group

Even though revenue forecasts increased, there was no change to the consensus price target of CN¥6.76, suggesting the analysts are focused on earnings as the driver of value creation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Genertec Universal Medical Group analyst has a price target of CN¥7.77 per share, while the most pessimistic values it at CN¥6.24. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

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 Genertec Universal Medical Group'sgrowth to accelerate, with the forecast 33% growth ranking favourably alongside historical growth of 26% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Genertec Universal Medical Group to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Genertec Universal Medical Group.