Forecast: Analysts Think BM GreenTech Berhad's (KLSE:BMGREEN) Business Prospects Have Improved Drastically

BM GreenTech Berhad (KLSE:BMGREEN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 7.4% over the past week, closing at RM1.89. Could this big upgrade push the stock even higher?

Following the upgrade, the current consensus from BM GreenTech Berhad's two analysts is for revenues of RM539m in 2025 which - if met - would reflect a modest 7.3% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 28% to RM0.09. Prior to this update, the analysts had been forecasting revenues of RM471m and earnings per share (EPS) of RM0.08 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for BM GreenTech Berhad

It will come as no surprise to learn that the analysts have increased their price target for BM GreenTech Berhad 24% to RM1.99 on the back of these upgrades.

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. We would highlight that BM GreenTech Berhad's revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that BM GreenTech Berhad is also expected to grow slower than other industry participants.

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, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, BM GreenTech Berhad could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.