HSS Engineers Berhad (KLSE:HSSEB) Analysts Are More Bearish Than They Used To Be

Explore HSS Engineers Berhad's Fair Values from the Community and select yours

The analysts covering HSS Engineers Berhad (KLSE:HSSEB) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the downgrade, the most recent consensus for HSS Engineers Berhad from its twin analysts is for revenues of RM304m in 2025 which, if met, would be a sizeable 48% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 82% to RM0.08. Previously, the analysts had been modelling revenues of RM357m and earnings per share (EPS) of RM0.089 in 2025. Indeed, we can see that the analysts are a lot more bearish about HSS Engineers Berhad's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for HSS Engineers Berhad

It'll come as no surprise then, to learn that the analysts have cut their price target 5.1% to RM1.12.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HSS Engineers Berhad's past performance and to peers in the same industry. The analysts are definitely expecting HSS Engineers Berhad's growth to accelerate, with the forecast 48% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect HSS Engineers Berhad to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for HSS Engineers Berhad. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of HSS Engineers Berhad.

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.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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.