What You Need To Know About The Gabungan AQRS Berhad (KLSE:GBGAQRS) Analyst Downgrade Today

The analysts covering Gabungan AQRS Berhad (KLSE:GBGAQRS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the most recent consensus for Gabungan AQRS Berhad from its three analysts is for revenues of RM251m in 2025 which, if met, would be a huge 195% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM295m in 2025. The consensus view seems to have become more pessimistic on Gabungan AQRS Berhad, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Gabungan AQRS Berhad

The consensus price target fell 19% to RM0.32, with the analysts clearly less optimistic about Gabungan AQRS Berhad's valuation following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Gabungan AQRS Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 195% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.6% 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 13% annually. Not only are Gabungan AQRS Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Gabungan AQRS Berhad this year. The 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 Gabungan AQRS Berhad's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Gabungan AQRS Berhad going forwards.

Of course, there's always more to the story. We have estimates for Gabungan AQRS 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.