Broker Revenue Forecasts For Kelington Group Berhad (KLSE:KGB) Are Surging Higher

Shareholders in Kelington Group Berhad (KLSE:KGB) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Kelington Group Berhad's four analysts is for revenues of RM1.2b in 2023, which would reflect a definite 16% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing RM1.1b of revenue in 2023. So there's been a pretty clear uptick in analyst sentiment after this consensus update, given the small lift in this year's revenue forecasts.

Check out our latest analysis for Kelington Group Berhad

There was no particular change to the consensus price target of RM1.68, with Kelington Group Berhad's latest outlook seemingly not enough to result in a change of valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Kelington Group Berhad at RM1.92 per share, while the most bearish prices it at RM1.41. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kelington Group Berhad's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 16% by the end of 2023. This indicates a significant reduction from annual growth of 29% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Kelington Group Berhad is expected to lag the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Kelington Group Berhad this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Kelington Group Berhad.

Thirsting for more data? At least one of Kelington Group Berhad's four analysts has provided estimates out to 2025, 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 upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.