New Forecasts: Here's What Analysts Think The Future Holds For United U-LI Corporation Berhad (KLSE:ULICORP)

United U-LI Corporation Berhad (KLSE:ULICORP) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the latest consensus from United U-LI Corporation Berhad's solo analyst is for revenues of RM285m in 2023, which would reflect a meaningful 14% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 24% to RM0.23. Prior to this update, the analyst had been forecasting revenues of RM250m and earnings per share (EPS) of RM0.14 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for United U-LI Corporation Berhad

It will come as no surprise to learn that the analyst has increased their price target for United U-LI Corporation Berhad 79% to RM2.18 on the back of these upgrades.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that United U-LI Corporation Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 5.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect United U-LI Corporation Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at United U-LI Corporation Berhad.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for United U-LI Corporation Berhad going out as far as 2024, and you can see them 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.