Analysts Just Made A Neat Upgrade To Their Marco Polo Marine Ltd. (SGX:5LY) Forecasts

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. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 4.2% over the past week, closing at S$0.05. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Marco Polo Marine's two analysts are now forecasting revenues of S$141m in 2024. This would be a notable 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 41% to S$0.0085. Before this latest update, the analysts had been forecasting revenues of S$128m and earnings per share (EPS) of S$0.0075 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Marco Polo Marine

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to S$0.068 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Marco Polo Marine's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 36% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 2.8% annually. So it's clear that despite the slowdown in growth, Marco Polo Marine is still expected to grow meaningfully faster 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. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Marco Polo Marine.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, 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.