The Solarvest Holdings Berhad (KLSE:SLVEST) Analysts Have Been Trimming Their Sales Forecasts

Market forces rained on the parade of Solarvest Holdings Berhad (KLSE:SLVEST) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the latest consensus from Solarvest Holdings Berhad's twin analysts is for revenues of RM204m in 2022, which would reflect a decent 9.6% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM258m in 2022. It looks like forecasts have become a fair bit less optimistic on Solarvest Holdings Berhad, given the sizeable cut to revenue estimates.

View our latest analysis for Solarvest Holdings Berhad

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Solarvest Holdings Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 9.6% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 8.8% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 24% annually for the foreseeable future. Although Solarvest Holdings Berhad's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Solarvest Holdings Berhad this year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Solarvest Holdings Berhad going forwards.

There might be good reason for analyst bearishness towards Solarvest Holdings Berhad, like concerns around earnings quality. For more information, you can click here to discover this and the 1 other risk we've identified.

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 that insiders are buying.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.