New Forecasts: Here's What Analysts Think The Future Holds For TH Plantations Berhad (KLSE:THPLANT)

By
Simply Wall St
Published
November 25, 2021
KLSE:THPLANT
Source: Shutterstock

Shareholders in TH Plantations Berhad (KLSE:THPLANT) 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 TH Plantations Berhad will make substantially more sales than they'd previously expected.

After the upgrade, the twin analysts covering TH Plantations Berhad are now predicting revenues of RM682m in 2021. If met, this would reflect a modest 3.7% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM613m in 2021. It looks like there's been a clear increase in optimism around TH Plantations Berhad, given the decent improvement in revenue forecasts.

View our latest analysis for TH Plantations Berhad

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KLSE:THPLANT Earnings and Revenue Growth November 25th 2021

Additionally, the consensus price target for TH Plantations Berhad increased 9.1% to RM0.48, 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. For example, we noticed that TH Plantations Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.7% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 2.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.8% per year. Not only are TH Plantations Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at TH Plantations Berhad.

Need some more information? At least one of TH Plantations Berhad's twin analysts has provided estimates out to 2023, which can be seen for 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.

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