NT$420 - That's What Analysts Think Advantech Co., Ltd. (TWSE:2395) Is Worth After These Results

Last week saw the newest full-year earnings release from Advantech Co., Ltd. (TWSE:2395), an important milestone in the company's journey to build a stronger business. Advantech reported NT$60b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NT$10.38 beat expectations, being 3.7% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Advantech

Taking into account the latest results, the most recent consensus for Advantech from twelve analysts is for revenues of NT$70.4b in 2025. If met, it would imply a decent 18% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 23% to NT$12.82. Before this earnings report, the analysts had been forecasting revenues of NT$68.3b and earnings per share (EPS) of NT$12.30 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Advantech 7.1% to NT$420on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Advantech analyst has a price target of NT$509 per share, while the most pessimistic values it at NT$278. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Advantech's past performance and to peers in the same industry. It's clear from the latest estimates that Advantech's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 18% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Advantech is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Advantech's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Advantech will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Advantech analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Advantech that you should be aware of.

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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.