Macquarie Group has upgraded its earnings per share forecasts and target price for engineering firm Lycopodium after the company raised its profit guidance for this financial year. Perth-based Lycopodium said on Wednesday it was expecting net profit after tax of $10.5 million for the 12 months ending June 30, up from its previous guidance of $8 million.

Based on the new guidance, Macquarie analyst Andrew Wackett lifted his financial 2010 earnings-per-share forecast by 22 per cent to 24.7¢ and his financial 2011 EPS forecast by 17.2 per cent to 27.1¢. He also increased his target price on the stock from $3.13 to $3.22.