Analysts are expressing increased optimism for Faraday Technology Corporation (TWSE:3035) after making substantial upward revisions to their financial forecasts for the year.
After the recent upgrades, the seven analysts covering Faraday Technology now project revenues of NT$21 billion for 2025. This would represent an 89% increase in sales compared to the previous 12 months, a significant jump in revenue growth. Simultaneously, statutory earnings per share are expected to increase by 83% to NT$7.91. Previously, the analysts had been forecasting revenues of NT$15 billion and earnings per share (EPS) of NT$7.90 in 2025. While the projections for earnings per share remained steady, the change in revenue expectations underscores a more positive sentiment regarding the company’s business prospects.
The analysts have reconfirmed their price target of NT$274, indicating that the expected sales increase may not immediately impact Faraday Technology’s valuation in the short term. When compared to industry trends, the company’s projected growth is particularly striking. Faraday Technology is anticipated to achieve an 89% annualized growth rate by the end of 2025, a noteworthy achievement compared to its historical 20% per annum growth over the past five years. In the same industry, revenue growth is forecast at 16% annually.
The consensus view reflects no significant shifts in Faraday Technology’s business trajectory, as the earnings per share remained consistent with earlier predictions. However, the increased revenue forecasts for the current year suggest a significant improvement in sales compared to the broader market.
Considering this significant upgrade, it may be worthwhile to take a closer look at Faraday Technology.
Disclaimer: This article is for informational purposes only and is not financial advice.
