Analysts Just Made A Significant Upgrade To Their UWC Berhad (KLSE:UWC) Forecasts

Shareholders in UWC Berhad (KLSE:UWC) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 14% to RM3.20 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the four analysts covering UWC Berhad are now predicting revenues of RM370m in 2025. If met, this would reflect a sizeable 28% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 348% to RM0.072. Before this latest update, the analysts had been forecasting revenues of RM332m and earnings per share (EPS) of RM0.063 in 2025. 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.

Check out our latest analysis for UWC Berhad

It will come as no surprise to learn that the analysts have increased their price target for UWC Berhad 28% to RM3.36 on the back of these upgrades.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting UWC Berhad's growth to accelerate, with the forecast 28% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect UWC Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts 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. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, UWC Berhad could be worth investigating further.

Better yet, our automated discounted cash flow calculation (DCF) suggests UWC Berhad could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.