Brokers Are Upgrading Their Views On Evergreen Marine Corporation (Taiwan) Ltd. (TWSE:2603) With These New Forecasts

Celebrations may be in order for Evergreen Marine Corporation (Taiwan) Ltd. (TWSE:2603) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After the upgrade, the six analysts covering Evergreen Marine Corporation (Taiwan) are now predicting revenues of NT$464b in 2024. If met, this would reflect a major 37% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 83% to NT$61.41. Before this latest update, the analysts had been forecasting revenues of NT$383b and earnings per share (EPS) of NT$39.40 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 Evergreen Marine Corporation (Taiwan)

Despite these upgrades, the analysts have not made any major changes to their price target of NT$224, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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. It's clear from the latest estimates that Evergreen Marine Corporation (Taiwan)'s rate of growth is expected to accelerate meaningfully, with the forecast 89% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 16% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 3.5% per year. It seems obvious that as part of the brighter growth outlook, Evergreen Marine Corporation (Taiwan) is expected 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. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Evergreen Marine Corporation (Taiwan).

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential warning signs with Evergreen Marine Corporation (Taiwan), including its declining profit margins. You can learn more, and discover the 3 other warning signs we've identified, for free on our platform here.

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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.