The BP Plastics Holding Bhd. (KLSE:BPPLAS) Analysts Have Been Trimming Their Sales Forecasts

The analysts covering BP Plastics Holding Bhd. (KLSE:BPPLAS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the latest downgrade, the dual analysts covering BP Plastics Holding Bhd provided consensus estimates of RM377m revenue in 2025, which would reflect a definite 18% decline on its sales over the past 12 months. Per-share earnings are expected to surge 160% to RM0.10. Before this latest update, the analysts had been forecasting revenues of RM477m and earnings per share (EPS) of RM0.10 in 2025. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a pretty serious reduction to revenue estimates and a small dip in EPS estimates to boot.

See our latest analysis for BP Plastics Holding Bhd

It'll come as no surprise then, to learn that the analysts have cut their price target 6.2% to RM0.98.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 18% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 7.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.9% annually for the foreseeable future. It's pretty clear that BP Plastics Holding Bhd's revenues are expected to perform substantially worse than the wider 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 BP Plastics Holding Bhd. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of BP Plastics Holding Bhd's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of BP Plastics Holding Bhd going forwards.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts 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.