Ennoconn Corporation (TWSE:6414) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Ennoconn Corporation (TWSE:6414) recently reported its annual numbers. It was a credible result overall, with revenues of NT$122b and statutory earnings per share of NT$19.01 both in line with analyst estimates, showing that Ennoconn is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Ennoconn

Taking into account the latest results, the current consensus from Ennoconn's six analysts is for revenues of NT$147.9b in 2024. This would reflect a huge 22% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 25% to NT$20.62. Before this earnings report, the analysts had been forecasting revenues of NT$131.2b and earnings per share (EPS) of NT$21.42 in 2024. While revenue forecasts have increased substantially, the analysts are a little more pessimistic on earnings, suggesting that the growth does not come without cost.

The analysts also upgraded Ennoconn's price target 18% to NT$374, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ennoconn, with the most bullish analyst valuing it at NT$435 and the most bearish at NT$287 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that Ennoconn's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10.0% p.a. 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ennoconn to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider 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 in mind, we wouldn't be too quick to come to a conclusion on Ennoconn. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Ennoconn going out to 2026, and you can see them free on our platform here..

Even so, be aware that Ennoconn is showing 2 warning signs in our investment analysis , you should know about...

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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.