New Forecasts: Here's What Analysts Think The Future Holds For SFP Tech Holdings Berhad (KLSE:SFPTECH)

Shareholders in SFP Tech Holdings Berhad (KLSE:SFPTECH) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that SFP Tech Holdings Berhad will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from SFP Tech Holdings Berhad's dual analysts is for revenues of RM129m in 2023, which would reflect a substantial 26% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 38% to RM0.019. Before this latest update, the analysts had been forecasting revenues of RM117m and earnings per share (EPS) of RM0.019 in 2023. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for SFP Tech Holdings Berhad

The consensus price target increased 25% to RM0.99, with an improved revenue forecast carrying the promise of a more valuable business, in time. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on SFP Tech Holdings Berhad, with the most bullish analyst valuing it at RM1.20 and the most bearish at RM0.79 per share. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that SFP Tech Holdings Berhad's revenue growth is expected to slow, with the forecast 26% annualised growth rate until the end of 2023 being well below the historical 73% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% annually. So it's pretty clear that, while SFP Tech Holdings Berhad's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at SFP Tech Holdings Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for SFP Tech Holdings Berhad going out as far as 2025, 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.