Analysts Have Just Cut Their Econpile Holdings Berhad (KLSE:ECONBHD) Revenue Estimates By 10%

Today is shaping up negative for Econpile Holdings Berhad (KLSE:ECONBHD) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the current consensus from Econpile Holdings Berhad's three analysts is for revenues of RM446m in 2025 which - if met - would reflect a substantial 33% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM496m in 2025. The consensus view seems to have become more pessimistic on Econpile Holdings Berhad, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Econpile Holdings Berhad

The consensus price target fell 11% to RM0.45, with the analysts clearly less optimistic about Econpile Holdings Berhad's valuation following this update.

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. For example, we noticed that Econpile Holdings Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 33% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.9% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So it looks like Econpile Holdings Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Econpile Holdings Berhad's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Econpile Holdings Berhad after today.

Looking to learn more? We have estimates for Econpile Holdings Berhad from its three analysts out until 2027, and you can see them free on our platform here.

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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.