Party Time: Brokers Just Made Major Increases To Their Focus Point Holdings Berhad (KLSE:FOCUSP) Earnings Forecasts

Shareholders in Focus Point Holdings Berhad (KLSE:FOCUSP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Focus Point Holdings Berhad from its dual analysts is for revenues of RM238m in 2022 which, if met, would be a notable 12% increase on its sales over the past 12 months. Per-share earnings are expected to increase 9.0% to RM0.089. Prior to this update, the analysts had been forecasting revenues of RM212m and earnings per share (EPS) of RM0.062 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Focus Point Holdings Berhad

It will come as no surprise to learn that the analysts have increased their price target for Focus Point Holdings Berhad 14% to RM1.49 on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Focus Point Holdings Berhad at RM1.59 per share, while the most bearish prices it at RM1.39. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Focus Point Holdings Berhad's growth to accelerate, with the forecast 12% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.2% per annum 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 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Focus Point Holdings Berhad is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Focus Point Holdings Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Focus Point Holdings Berhad going out as far as 2024, 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.

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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.