In his Jan 16 note, Yeo suggests that the company's revenue from its shipyard operations could be stronger than expected thanks to a bigger capacity and more orders.
He was previously projecting FY2026 revenue of $97 million.
Yeo now believes that the yard can book revenue of $120 million instead. For one, the $198 million contract to build a vessel for Taiwan's Academy of Marine Research can be completed in three years insteaf of four as previously estimated.
Yeo is also expecting stronger revenue estimates for other ship repair activities.
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As such, he has raised his FY2026, FY2027 and FY2028 earnings forecasts by 4%, 9% and 9% each.
He believes that Marco Polo Marine is now trading at "compelling" valuations of 13x FY2026 earnings.
The company is set to enjoy strong earnings growth of more than 50% y-o-y for FY2026 and further grow at a CAGR of 22% to FY2028.
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Yeo's revised target price is based on 15x FY2026 earnings.
Marco Polo Marine shares changed hands at 15 cents as a 9.43 am, down 1.97%.
