This Just In: Analysts Are Boosting Their HBM Holdings Limited (HKG:2142) Outlook for This Year

Shareholders in HBM Holdings Limited (HKG:2142) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

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Following the upgrade, the latest consensus from HBM Holdings' two analysts is for revenues of US$232m in 2026, which would reflect a major 29% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to shrink 7.6% to US$0.09 in the same period. Prior to this update, the analysts had been forecasting revenues of US$202m and earnings per share (EPS) of US$0.07 in 2026. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for HBM Holdings

Despite these upgrades, the analysts have not made any major changes to their price target of US$2.55, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that HBM Holdings' revenue growth is expected to slow, with the forecast 29% annualised growth rate until the end of 2026 being well below the historical 44% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 23% per year. Even after the forecast slowdown in growth, it seems obvious that HBM Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this 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 this year's earnings expectations, it might be time to take another look at HBM Holdings.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for HBM Holdings going out as far as 2028, and you can see them free on our platform here.

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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.