Party Time: One Broker Just Made Major Increases To Their Dyna-Mac Holdings Ltd. (SGX:NO4) Earnings Forecast

Dyna-Mac Holdings Ltd. (SGX:NO4) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The stock price has risen 5.3% to S$0.40 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.

After the upgrade, the lone analyst covering Dyna-Mac Holdings is now predicting revenues of S$481m in 2024. If met, this would reflect a sizeable 25% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 25% to S$0.034. Previously, the analyst had been modelling revenues of S$404m and earnings per share (EPS) of S$0.028 in 2024. 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.

Check out our latest analysis for Dyna-Mac Holdings

With these upgrades, we're not surprised to see that the analyst has lifted their price target 13% to S$0.52 per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Dyna-Mac Holdings' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 25% growth on an annualised basis. This is compared to a historical growth rate of 33% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.5% per year. Even after the forecast slowdown in growth, it seems obvious that Dyna-Mac 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 the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Dyna-Mac Holdings could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Dyna-Mac Holdings going out as far as 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.

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