Need To Know: Analysts Are Much More Bullish On New World Development Company Limited (HKG:17) Revenues
Shareholders in New World Development Company Limited (HKG:17) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that New World Development will make substantially more sales than they'd previously expected.
Following the upgrade, the most recent consensus for New World Development from its eight analysts is for revenues of HK$28b in 2026 which, if met, would be a huge 46% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of HK$25b in 2026. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.
See our latest analysis for New World Development
The consensus price target fell 6.7% to HK$7.52, with the analysts clearly less optimistic about New World Development's valuation following this update.
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 New World Development's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 114% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 19% 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 2.2% per year. So it looks like New World Development is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for New World Development this year. They're also forecasting more rapid revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of New World Development's future valuation. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at New World Development.
Want to learn more? At least one of New World Development's eight analysts has provided estimates out to 2029, 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 with high insider ownership.
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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.