Analysts Just Shipped A Captivating Upgrade To Their Keyfield International Berhad (KLSE:KEYFIELD) Estimates

Keyfield International Berhad (KLSE:KEYFIELD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 6.1% to RM2.78 over the past 7 days. Could this big upgrade push the stock even higher?

Following the latest upgrade, the current consensus, from the two analysts covering Keyfield International Berhad, is for revenues of RM523m in 2024, which would reflect an uneasy 8.9% reduction in Keyfield International Berhad's sales over the past 12 months. Statutory earnings per share are anticipated to fall 12% to RM0.18 in the same period. Before this latest update, the analysts had been forecasting revenues of RM469m and earnings per share (EPS) of RM0.16 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Keyfield International Berhad

Despite these upgrades, the analysts have not made any major changes to their price target of RM2.64, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Keyfield International Berhad's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 8.9% by the end of 2024. This indicates a significant reduction from annual growth of 74% over the last year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 5.4% annually for the foreseeable future. So it's pretty clear that Keyfield International Berhad's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market this year. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Keyfield International Berhad could be a good candidate for more research.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2025, 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 with high insider ownership.

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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.