(Bloomberg) -- Xiaomi Corp.’s recent stock rally has been so strong that its price has surpassed analysts’ expectations, raising questions about how much further it can go as the company prepares to report earnings.

Shares of the smartphone maker have almost quadrupled in the past year, far beating all the other members of the Hang Seng Tech Index. They closed at HK$55.80 on Monday, higher than the average analyst price estimate of HK$54.99 for the next year.

While the quarterly results are likely to be strong with a positive near-term outlook, Bloomberg Intelligence analyst Steven Tseng notes that the stock is now trading at a higher multiple than its peers. Investors have boosted options bets ahead of the release, sending the number of contracts outstanding to the highest level since May 2021 and pricing in more post-earnings volatility than after past reports.

“It’s worth noting that such optimism might have been reflected in the stock’s valuation,” Tseng said, referring to the high expectations for the earnings due later Tuesday. “Analysts are waiting for 4Q24 results and management remarks to adjust their forecasts.”