Time To Worry? Analysts Are Downgrading Their Hartalega Holdings Berhad (KLSE:HARTA) Outlook

The analysts covering Hartalega Holdings Berhad (KLSE:HARTA) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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Following the downgrade, the consensus from 19 analysts covering Hartalega Holdings Berhad is for revenues of RM2.3b in 2026, implying a noticeable 5.1% decline in sales compared to the last 12 months. Per-share earnings are expected to increase 9.9% to RM0.021. Previously, the analysts had been modelling revenues of RM2.6b and earnings per share (EPS) of RM0.03 in 2026. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Hartalega Holdings Berhad

The consensus price target fell 16% to RM1.28, with the weaker earnings outlook clearly leading analyst valuation estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 30% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 14% annually. So while a broad number of companies are forecast to grow, unfortunately Hartalega Holdings Berhad is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Hartalega Holdings Berhad. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Hartalega Holdings Berhad's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Hartalega Holdings Berhad going out to 2028, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.