The Supermax Corporation Berhad (KLSE:SUPERMX) Analysts Have Been Trimming Their Sales Forecasts

The latest analyst coverage could presage a bad day for Supermax Corporation Berhad (KLSE:SUPERMX), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from Supermax Corporation Berhad's four analysts is for revenues of RM929m in 2025, which would reflect a substantial 25% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing RM1.1b of revenue in 2025. It looks like forecasts have become a fair bit less optimistic on Supermax Corporation Berhad, given the measurable cut to revenue estimates.

See our latest analysis for Supermax Corporation Berhad

Notably, the analysts have cut their price target 14% to RM0.78, suggesting concerns around Supermax Corporation Berhad's valuation.

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. For example, we noticed that Supermax Corporation Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 25% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 30% 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 14% per year. So it looks like Supermax Corporation Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Supermax Corporation Berhad this year. They're also forecasting more rapid revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Supermax Corporation Berhad after today.

Want more information? At least one of Supermax Corporation Berhad's four analysts has provided estimates out to 2027, 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 backed by insiders.

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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.