Need To Know: One Analyst Is Much More Bullish On Boustead Plantations Berhad (KLSE:BPLANT) Revenues

Boustead Plantations Berhad (KLSE:BPLANT) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 5.9% over the past week, closing at RM1.07. Could this big upgrade push the stock even higher?

Following the upgrade, the most recent consensus for Boustead Plantations Berhad from its sole analyst is for revenues of RM1.3b in 2022 which, if met, would be a decent 12% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to crater 82% to RM0.054 in the same period. Previously, the analyst had been modelling revenues of RM1.1b and earnings per share (EPS) of RM0.042 in 2022. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for Boustead Plantations Berhad

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Boustead Plantations Berhad's past performance and to peers in the same industry. It's clear from the latest estimates that Boustead Plantations Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 7.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.2% annually. So it's clear with the acceleration in growth, Boustead Plantations Berhad is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Boustead Plantations Berhad.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Boustead Plantations Berhad that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology 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.

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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.