Bullish: This Analyst Just Lifted Their Sitronix Technology Corporation (TPE:8016) Outlook For This Year

Sitronix Technology Corporation (TPE:8016) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Sitronix Technology has also found favour with investors, with the stock up a noteworthy 13% to NT$239 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the latest consensus from Sitronix Technology's single analyst is for revenues of NT$17b in 2021, which would reflect a sizeable 21% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 48% to NT$17.08. Previously, the analyst had been modelling revenues of NT$15b and earnings per share (EPS) of NT$11.22 in 2021. 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 Sitronix Technology

It will come as no surprise to learn that the analyst has increased their price target for Sitronix Technology 56% to NT$280 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. It's clear from the latest estimates that Sitronix Technology's rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 8.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Sitronix Technology to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. 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, Sitronix Technology could be worth investigating further.

Better yet, our automated discounted cash flow calculation (DCF) suggests Sitronix Technology could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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 that insiders are buying.

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This article by Simply Wall St is general in nature. 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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