This Analyst Just Made A Massive Upgrade To Their MNRB Holdings Berhad (KLSE:MNRB) Earnings Forecasts

MNRB Holdings Berhad (KLSE:MNRB) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. Investors have been pretty optimistic on MNRB Holdings Berhad too, with the stock up 17% to RM1.64 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the consensus from one analyst covering MNRB Holdings Berhad is for revenues of RM635m in 2024, implying a concerning 81% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to dip 5.2% to RM0.31 in the same period. Before this latest update, the analyst had been forecasting revenues of RM547m and earnings per share (EPS) of RM0.20 in 2024. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for MNRB Holdings Berhad

With these upgrades, we're not surprised to see that the analyst has lifted their price target 21% to RM1.70 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MNRB Holdings Berhad's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 89% by the end of 2024. This indicates a significant reduction from annual growth of 9.7% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 2.3% annually for the foreseeable future. So it's pretty clear that MNRB Holdings Berhad's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market this year. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, MNRB Holdings Berhad could be worth investigating further.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on MNRB Holdings Berhad that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology 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.