Brokers Are Upgrading Their Views On Vestland Berhad (KLSE:VLB) With These New Forecasts
Vestland Berhad (KLSE:VLB) 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.
Following the upgrade, the most recent consensus for Vestland Berhad from its twin analysts is for revenues of RM649m in 2024 which, if met, would be a substantial 69% increase on its sales over the past 12 months. Per-share earnings are expected to leap 69% to RM0.049. Previously, the analysts had been modelling revenues of RM514m and earnings per share (EPS) of RM0.043 in 2024. 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 Vestland Berhad
It will come as no surprise to learn that the analysts have increased their price target for Vestland Berhad 7.4% to RM0.58 on the back of these upgrades.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Vestland Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 69% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 23% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Vestland Berhad 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. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Vestland Berhad could be worth investigating further.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning sign with Vestland Berhad, including concerns around earnings quality. You can learn more, and discover the 1 other warning sign we've identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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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.
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