Just In: One Analyst Has Become A Lot More Bullish On Boustead Plantations Berhad's (KLSE:BPLANT) Earnings

Celebrations may be in order for Boustead Plantations Berhad (KLSE:BPLANT) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from Boustead Plantations Berhad's solitary analyst is for revenues of RM1.1b in 2021, which would reflect a solid 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to ascend 12% to RM0.092. Previously, the analyst had been modelling revenues of RM876m and earnings per share (EPS) of RM0.045 in 2021. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Boustead Plantations Berhad

Despite these upgrades, the analyst has not made any major changes to their price target of RM0.93, suggesting that the higher estimates are not likely to have a long term impact on what the stock 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. It's clear from the latest estimates that Boustead Plantations Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 1.7% 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 1.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Boustead Plantations Berhad to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Boustead Plantations Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Boustead Plantations Berhad going out as far as 2023, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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.

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