Analysts Have Been Trimming Their Able Global Berhad (KLSE:ABLEGLOB) Price Target After Its Latest Report

Last week saw the newest annual earnings release from Able Global Berhad (KLSE:ABLEGLOB), an important milestone in the company's journey to build a stronger business. Able Global Berhad beat revenue expectations by 2.9%, at RM729m. Statutory earnings per share (EPS) came in at RM0.22, some 2.7% short of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Able Global Berhad

Following the latest results, Able Global Berhad's two analysts are now forecasting revenues of RM748.7m in 2025. This would be a satisfactory 2.7% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be RM0.23, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of RM747.1m and earnings per share (EPS) of RM0.21 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice increase in earnings per share expectations following these results.

The average the analysts price target fell 12% to RM2.33, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Able Global Berhad's past performance and to peers in the same industry. We would highlight that Able Global Berhad's revenue growth is expected to slow, with the forecast 2.7% annualised growth rate until the end of 2025 being well below the historical 6.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Able Global Berhad is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Able Global Berhad following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Able Global Berhad going out as far as 2026, and you can see them free on our platform here.

You can also view our analysis of Able Global Berhad's balance sheet, and whether we think Able Global Berhad is carrying too much debt, for free on our platform here.

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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.