This Analyst Just Wrote A Brand New Outlook For Arizon RFID Technology (Cayman) Co., Ltd.'s (TWSE:6863) Business

Arizon RFID Technology (Cayman) Co., Ltd. (TWSE:6863) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory 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.

After the upgrade, the solitary analyst covering Arizon RFID Technology (Cayman) is now predicting revenues of NT$4.5b in 2024. If met, this would reflect a sizeable 51% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 72% to NT$12.36. Prior to this update, the analyst had been forecasting revenues of NT$3.9b and earnings per share (EPS) of NT$10.54 in 2024. 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 Arizon RFID Technology (Cayman)

It will come as no surprise to learn that the analyst has increased their price target for Arizon RFID Technology (Cayman) 22% to NT$285 on the back of these upgrades.

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. The analyst is definitely expecting Arizon RFID Technology (Cayman)'s growth to accelerate, with the forecast 73% annualised growth to the end of 2024 ranking favourably alongside historical growth of 38% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Arizon RFID Technology (Cayman) is expected to grow much faster than its 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, Arizon RFID Technology (Cayman) could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Arizon RFID Technology (Cayman) going out as far as 2025, and you can see them free on our platform here.

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 backed by insiders.

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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.

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