Analysts Just Shaved Their Coraza Integrated Technology Berhad (KLSE:CORAZA) Forecasts Dramatically

One thing we could say about the analysts on Coraza Integrated Technology Berhad (KLSE:CORAZA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After the downgrade, the consensus from Coraza Integrated Technology Berhad's three analysts is for revenues of RM95m in 2023, which would reflect a noticeable 6.0% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to decline 10% to RM0.0093 in the same period. Before this latest update, the analysts had been forecasting revenues of RM107m and earnings per share (EPS) of RM0.014 in 2023. Indeed, we can see that the analysts are a lot more bearish about Coraza Integrated Technology Berhad's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Coraza Integrated Technology Berhad

It'll come as no surprise then, to learn that the analysts have cut their price target 13% to RM0.72.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 6.0% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 18% 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 4.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Coraza Integrated Technology Berhad is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Coraza Integrated Technology Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Coraza Integrated Technology Berhad analysts - going out to 2025, 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.