AMMB Holdings Berhad (KLSE:AMBANK) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

AMMB Holdings Berhad (KLSE:AMBANK) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat expectations with revenues of RM1.3b arriving 3.4% ahead of forecasts. Statutory earnings per share (EPS) were RM0.16, 3.3% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the current consensus from AMMB Holdings Berhad's 16 analysts is for revenues of RM5.09b in 2026. This would reflect a credible 4.6% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be RM0.62, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of RM5.08b and earnings per share (EPS) of RM0.61 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for AMMB Holdings Berhad

There were no changes to revenue or earnings estimates or the price target of RM6.18, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on AMMB Holdings Berhad, with the most bullish analyst valuing it at RM7.00 and the most bearish at RM4.50 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting AMMB Holdings Berhad's growth to accelerate, with the forecast 9.4% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.8% per annum 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 6.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AMMB Holdings Berhad is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple AMMB Holdings Berhad analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with AMMB Holdings Berhad , and understanding this should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.