Jaya Tiasa Holdings Berhad (KLSE:JTIASA) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Jaya Tiasa Holdings Berhad too, with the stock up 16% to RM0.89 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the current consensus from Jaya Tiasa Holdings Berhad's lone analyst is for revenues of RM826m in 2022 which - if met - would reflect a notable 12% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 92% to RM0.14. Before this latest update, the analyst had been forecasting revenues of RM686m and earnings per share (EPS) of RM0.09 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
It will come as no surprise to learn that the analyst has increased their price target for Jaya Tiasa Holdings Berhad 21% to RM0.97 on the back of these upgrades.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Jaya Tiasa Holdings Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 12% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 9.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to decline 2.0% per year. So it's pretty clear that Jaya Tiasa Holdings Berhad is expected to grow 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. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Jaya Tiasa Holdings Berhad.
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 2024, 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 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.