Yahoo Finance This Just In: Analysts Are Boosting Their Marco Polo Marine Ltd. (SGX:5LY) Outlook for This Year
Marco Polo Marine Ltd. (SGX:5LY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory 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 stock price has risen 4.2% to S$0.05 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
After this upgrade, Marco Polo Marine's two analysts are now forecasting revenues of S$141m in 2024. This would be a decent 11% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 41% to S$0.0085. Prior to this update, the analysts had been forecasting revenues of S$128m and earnings per share (EPS) of S$0.0075 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for Marco Polo Marine
With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to S$0.068 per share.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Marco Polo Marine's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 36% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 2.8% per year. Factoring in the forecast slowdown in growth, it's pretty clear that Marco Polo Marine is still 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. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Marco Polo Marine could be worth investigating further.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for 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 that insiders are buying.
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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.
