Giantec Semiconductor Corporation (SHSE:688123) shareholders will have a reason to smile today, with the analysts 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. The market may be pricing in some blue sky too, with the share price gaining 16% to CN¥63.90 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the latest consensus from Giantec Semiconductor's three analysts is for revenues of CN¥1.2b in 2023, which would reflect a major 43% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 97% to CN¥3.35. Previously, the analysts had been modelling revenues of CN¥1.1b and earnings per share (EPS) of CN¥2.29 in 2023. 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.
View our latest analysis for Giantec Semiconductor
With these upgrades, we're not surprised to see that the analysts have lifted their price target 56% to CN¥111 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. It's clear from the latest estimates that Giantec Semiconductor's rate of growth is expected to accelerate meaningfully, with the forecast 43% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 26% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 24% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Giantec Semiconductor 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Giantec Semiconductor.
Analysts are definitely bullish on Giantec Semiconductor, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 2 other concerns we've identified, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
