Analysts Just Made A Neat Upgrade To Their King Slide Works Co., Ltd. (TWSE:2059) Forecasts

King Slide Works Co., Ltd. (TWSE:2059) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the 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 5.4% over the past week, closing at NT$1,955. Could this big upgrade push the stock even higher?

Following the upgrade, the most recent consensus for King Slide Works from its six analysts is for revenues of NT$15b in 2025 which, if met, would be a sizeable 47% increase on its sales over the past 12 months. Per-share earnings are expected to jump 24% to NT$79.97. Prior to this update, the analysts had been forecasting revenues of NT$13b and earnings per share (EPS) of NT$68.87 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for King Slide Works

With these upgrades, we're not surprised to see that the analysts have lifted their price target 17% to NT$2,101 per share.

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 analysts are definitely expecting King Slide Works' growth to accelerate, with the forecast 47% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% 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 21% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect King Slide Works to grow 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, King Slide Works could be worth investigating further.

Analysts are definitely bullish on King Slide Works, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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.