The Coraza Integrated Technology Berhad (KLSE:CORAZA) Analysts Have Been Trimming Their Sales Forecasts

The latest analyst coverage could presage a bad day for Coraza Integrated Technology Berhad (KLSE:CORAZA), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the latest downgrade, the current consensus, from the three analysts covering Coraza Integrated Technology Berhad, is for revenues of RM109m in 2023, which would reflect a sizeable 21% reduction in Coraza Integrated Technology Berhad's sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM122m in 2023. The consensus view seems to have become more pessimistic on Coraza Integrated Technology Berhad, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Coraza Integrated Technology Berhad

We'd point out that there was no major changes to their price target of RM0.86, suggesting the latest estimates were not enough to shift their view on the value of the business.

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 21% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 16% over the last year. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.9% per year. It's pretty clear that Coraza Integrated Technology Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Coraza Integrated Technology Berhad after today.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Coraza Integrated Technology Berhad's business, like concerns around earnings quality. For more information, you can click here to discover this and the 1 other warning sign we've identified.

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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.