Rainbows and Unicorns: The Elite Advanced Laser Corporation (TWSE:3450) Analyst Just Became A Lot More Optimistic

Elite Advanced Laser Corporation (TWSE:3450) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next 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. Elite Advanced Laser has also found favour with investors, with the stock up a worthy 14% to NT$291 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 current consensus from Elite Advanced Laser's single analyst is for revenues of NT$16b in 2025 which - if met - would reflect a substantial 148% increase on its sales over the past 12 months. Per-share earnings are expected to surge 510% to NT$11.01. Prior to this update, the analyst had been forecasting revenues of NT$15b and earnings per share (EPS) of NT$8.97 in 2025. 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.

See our latest analysis for Elite Advanced Laser

With these upgrades, we're not surprised to see that the analyst has lifted their price target 22% to NT$330 per share.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Elite Advanced Laser's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 107% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 17% annually. Not only are Elite Advanced Laser's revenues expected to improve, it seems that the analyst is also expecting it 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 next year. 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 Elite Advanced Laser.

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 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 with high insider ownership.

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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.