Need To Know: Analysts Are Much More Bullish On Wemade Co.,Ltd. (KOSDAQ:112040)

Celebrations may be in order for Wemade Co.,Ltd. (KOSDAQ:112040) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

After the upgrade, the consensus from WemadeLtd's four analysts is for revenues of ₩247m in 2021, which would reflect a substantial 100% decline in sales compared to the last year of performance. Losses are expected to turn into profits real soon, with the analysts forecasting ₩2,623 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of ₩183m and earnings per share (EPS) of ₩1,688 in 2021. 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.

See our latest analysis for WemadeLtd

It will come as no surprise to learn that the analysts have increased their price target for WemadeLtd 7.2% to ₩59,250 on the back of these upgrades. 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. The most optimistic WemadeLtd analyst has a price target of ₩78,000 per share, while the most pessimistic values it at ₩42,000. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that WemadeLtd'sdecline is expected to accelerate, with revenues forecast to fall 100% next year, topping off a historical decline of 1.3% a year over the past five years. Compare this against analyst estimates for companies in the wider industry, which suggest that revenues (in aggregate) are expected to grow 19% next year. So it's pretty clear that, while it does have declining revenues, the analysts also expect WemadeLtd to suffer worse 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. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at WemadeLtd.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for WemadeLtd going out to 2022, and you can see them 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 that insiders are buying.

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This article by Simply Wall St is general in nature. 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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