Broker Revenue Forecasts For Guan Chong Berhad (KLSE:GCB) Are Surging Higher

Shareholders in Guan Chong Berhad (KLSE:GCB) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Guan Chong Berhad will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 5.9% to RM2.51 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the most recent consensus for Guan Chong Berhad from its three analysts is for revenues of RM7.2b in 2024 which, if met, would be a huge 34% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM6.3b in 2024. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

Check out our latest analysis for Guan Chong Berhad

Additionally, the consensus price target for Guan Chong Berhad increased 16% to RM2.28, showing a clear increase in optimism from the analysts involved.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Guan Chong Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 14% 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 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Guan Chong Berhad to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Guan Chong Berhad this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Guan Chong Berhad.

Analysts are clearly in love with Guan Chong Berhad at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other flag we've identified .

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.