News Flash: Analysts Just Made A Meaningful Upgrade To Their Johnson Health Tech .Co., Ltd. (TWSE:1736) Forecasts

Johnson Health Tech .Co., Ltd. (TWSE:1736) 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. Investors have been pretty optimistic on Johnson Health Tech .Co too, with the stock up 20% to NT$147 over the past week. Could this upgrade be enough to drive the stock even higher?

After this upgrade, Johnson Health Tech .Co's lone analyst is now forecasting revenues of NT$47b in 2024. This would be a decent 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 74% to NT$6.75. Before this latest update, the analyst had been forecasting revenues of NT$42b and earnings per share (EPS) of NT$4.63 in 2024. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Johnson Health Tech .Co

It will come as no surprise to learn that the analyst has increased their price target for Johnson Health Tech .Co 31% to NT$147 on the back of these upgrades.

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. The analyst is definitely expecting Johnson Health Tech .Co's growth to accelerate, with the forecast 35% annualised growth to the end of 2024 ranking favourably alongside historical growth of 10.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Johnson Health Tech .Co is expected to grow much faster than its 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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Johnson Health Tech .Co.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You can also see our analysis of Johnson Health Tech .Co's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.