Public Bank Berhad (KLSE:PBBANK) Released Earnings Last Week And Analysts Lifted Their Price Target To RM5.10

It's been a good week for Public Bank Berhad (KLSE:PBBANK) shareholders, because the company has just released its latest quarterly results, and the shares gained 3.7% to RM4.80. Public Bank Berhad reported RM3.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of RM0.092 beat expectations, being 4.3% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Public Bank Berhad

Taking into account the latest results, the consensus forecast from Public Bank Berhad's 17 analysts is for revenues of RM13.8b in 2024. This reflects a modest 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.2% to RM0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM13.8b and earnings per share (EPS) of RM0.36 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.4% to RM5.10. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Public Bank Berhad, with the most bullish analyst valuing it at RM5.40 and the most bearish at RM4.40 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Public Bank Berhad is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Public Bank Berhad's growth to accelerate, with the forecast 10% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Public Bank Berhad to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Public Bank Berhad going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Public Bank Berhad you should be aware of.

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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.