Earnings Update: Here's Why Analysts Just Lifted Their 99 Speed Mart Retail Holdings Berhad (KLSE:99SMART) Price Target To RM3.46

Investors in 99 Speed Mart Retail Holdings Berhad (KLSE:99SMART) had a good week, as its shares rose 5.1% to close at RM3.30 following the release of its third-quarter results. It was a workmanlike result, with revenues of RM3.0b coming in 2.3% ahead of expectations, and statutory earnings per share of RM0.058, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

After the latest results, the ten analysts covering 99 Speed Mart Retail Holdings Berhad are now predicting revenues of RM12.9b in 2026. If met, this would reflect a decent 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 28% to RM0.089. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM12.6b and earnings per share (EPS) of RM0.083 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

See our latest analysis for 99 Speed Mart Retail Holdings Berhad

It will come as no surprise to learn that the analysts have increased their price target for 99 Speed Mart Retail Holdings Berhad 12% to RM3.46on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic 99 Speed Mart Retail Holdings Berhad analyst has a price target of RM3.85 per share, while the most pessimistic values it at RM2.55. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that 99 Speed Mart Retail Holdings Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 8.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that 99 Speed Mart Retail Holdings Berhad is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around 99 Speed Mart Retail Holdings Berhad's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that 99 Speed Mart Retail Holdings Berhad will grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on 99 Speed Mart Retail Holdings Berhad. Long-term earnings power is much more important than next year's profits. We have forecasts for 99 Speed Mart Retail Holdings Berhad going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for 99 Speed Mart Retail Holdings Berhad you should know about.

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

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.