Analysts Are Betting On Marco Polo Marine Ltd. (SGX:5LY) With A Big Upgrade This Week

Shareholders in Marco Polo Marine Ltd. (SGX:5LY) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. The stock price has risen 9.8% to S$0.056 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

Following this upgrade, Marco Polo Marine's twin analysts are forecasting 2023 revenues to be S$114m, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of S$98m in 2023. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

Check out our latest analysis for Marco Polo Marine

The consensus price target rose 11% to S$0.06, with the analysts clearly more optimistic about Marco Polo Marine's prospects following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 0.2% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 31% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 14% per year. So it's pretty clear that Marco Polo Marine's revenues are expected to shrink slower than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Marco Polo Marine this year. They're also forecasting for revenues to perform better than companies in the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Marco Polo Marine.

Of course, there's always more to the story. At least one of Marco Polo Marine's twin analysts has provided estimates out to 2025, 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 that insiders are buying.

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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.