What Does The Future Hold For Malaysian Resources Corporation Berhad (KLSE:MRCB)? These Analysts Have Been Cutting Their Estimates

The analysts covering Malaysian Resources Corporation Berhad (KLSE:MRCB) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

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After the downgrade, the five analysts covering Malaysian Resources Corporation Berhad are now predicting revenues of RM1.6b in 2025. If met, this would reflect a huge 31% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM1.8b in 2025. It looks like forecasts have become a fair bit less optimistic on Malaysian Resources Corporation Berhad, given the measurable cut to revenue estimates.

See our latest analysis for Malaysian Resources Corporation Berhad

The consensus price target fell 5.6% to RM0.54, with the analysts clearly less optimistic about Malaysian Resources Corporation Berhad's valuation following this update.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Malaysian Resources Corporation Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Malaysian Resources Corporation Berhad to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Malaysian Resources Corporation Berhad this year. They're also forecasting more rapid revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Malaysian Resources Corporation Berhad after today.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Malaysian Resources Corporation Berhad's financials, such as the risk of cutting its dividend. Learn more, and discover the 2 other concerns we've identified, 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.

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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.