Industry Analysts Just Upgraded Their Oceancash Pacific Berhad (KLSE:OCNCASH) Revenue Forecasts By 14%

Shareholders in Oceancash Pacific Berhad (KLSE:OCNCASH) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the consensus from dual analysts covering Oceancash Pacific Berhad is for revenues of RM78m in 2020, implying a measurable 4.2% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing RM68m of revenue in 2020. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

View our latest analysis for Oceancash Pacific Berhad

Notably, the analysts have cut their price target 9.7% to RM0.70, suggesting concerns around Oceancash Pacific Berhad's valuation. 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. The most optimistic Oceancash Pacific Berhad analyst has a price target of RM0.83 per share, while the most pessimistic values it at RM0.72. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 4.2%, a significant reduction from annual growth of 1.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 15% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Oceancash Pacific Berhad is expected to lag the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Oceancash Pacific Berhad this year. They're also anticipating slower 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 that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Oceancash Pacific Berhad.

Still got questions? We have analyst estimates for Oceancash Pacific Berhad going out to 2022, and you can see them free on our platform here.

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