Rainbows and Unicorns: Yang Ming Marine Transport Corporation (TWSE:2609) Analysts Just Became A Lot More Optimistic

Yang Ming Marine Transport Corporation (TWSE:2609) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's 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. Investors have been pretty optimistic on Yang Ming Marine Transport too, with the stock up 15% to NT$72.90 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the most recent consensus for Yang Ming Marine Transport from its five analysts is for revenues of NT$235b in 2024 which, if met, would be a huge 42% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 160% to NT$18.43. Prior to this update, the analysts had been forecasting revenues of NT$201b and earnings per share (EPS) of NT$14.97 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 Yang Ming Marine Transport

With these upgrades, we're not surprised to see that the analysts have lifted their price target 10% to NT$66.25 per share.

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 analysts are definitely expecting Yang Ming Marine Transport's growth to accelerate, with the forecast 102% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.3% per annum 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 1.6% per year. It seems obvious that as part of the brighter growth outlook, Yang Ming Marine Transport is expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Yang Ming Marine Transport.

Analysts are clearly in love with Yang Ming Marine Transport at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

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.