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iFAST Corporation Ltd. (SGX:AIY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market seems to be pricing in some improvement in the business too, with the stock up 5.3% over the past week, closing at S$7.89. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
Following the upgrade, the most recent consensus for iFAST from its four analysts is for revenues of S$494m in 2025 which, if met, would be a major 29% increase on its sales over the past 12 months. Per-share earnings are expected to soar 58% to S$0.35. Before this latest update, the analysts had been forecasting revenues of S$410m and earnings per share (EPS) of S$0.30 in 2025. 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 iFAST
It will come as no surprise to learn that the analysts have increased their price target for iFAST 6.0% to S$8.45 on the back of these upgrades.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the iFAST's past performance and to peers in the same industry. It's clear from the latest estimates that iFAST's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 18% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect iFAST 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are 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 iFAST.
Better yet, our automated discounted cash flow calculation (DCF) suggests iFAST could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.