Growth Investors: Industry Analysts Just Upgraded Their Hibiscus Petroleum Berhad (KLSE:HIBISCS) Revenue Forecasts By 20%

Hibiscus Petroleum Berhad (KLSE:HIBISCS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Hibiscus Petroleum Berhad will make substantially more sales than they'd previously expected. The stock price has risen 7.6% to RM0.70 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the latest consensus from Hibiscus Petroleum Berhad's three analysts is for revenues of RM890m in 2022, which would reflect a major 50% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM742m in 2022. It looks like there's been a clear increase in optimism around Hibiscus Petroleum Berhad, given the solid increase in revenue forecasts.

See our latest analysis for Hibiscus Petroleum Berhad

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 Hibiscus Petroleum Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 39% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 31% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Hibiscus Petroleum Berhad is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Hibiscus Petroleum Berhad.

Unanswered questions? At least one of Hibiscus Petroleum Berhad's three analysts has provided estimates out to 2023, which can be seen for 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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