One Analyst's Revenue Estimates For D.I Corporation (KRX:003160) Are Surging Higher

D.I Corporation (KRX:003160) shareholders will have a reason to smile today, with the covering analyst 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. The stock price has risen 4.7% to ₩15,480 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

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Following the latest upgrade, the current consensus, from the solitary analyst covering D.I, is for revenues of ₩452m in 2025, which would reflect a painful 100% reduction in D.I's sales over the past 12 months. Per-share earnings are expected to leap 3,534% to ₩1,530. Prior to this update, the analyst had been forecasting revenues of ₩384m and earnings per share (EPS) of ₩1,438 in 2025. The forecasts seem more optimistic now, with a substantial gain in revenue and a small lift in earnings per share estimates.

See our latest analysis for D.I

Despite these upgrades, the consensus price target fell 8.4% to ₩22,900, perhaps signalling that the uplift in performance is not expected to last.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 100% by the end of 2025. This indicates a significant reduction from annual growth of 8.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. It's pretty clear that D.I's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of D.I's future valuation. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at D.I.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for D.I going out as far as 2027, 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 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.