Analysts' Revenue Estimates For Pantech Group Holdings Berhad (KLSE:PANTECH) Are Surging Higher

Pantech Group Holdings Berhad (KLSE:PANTECH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Pantech Group Holdings Berhad will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 6.3% over the past week, closing at RM0.42. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the latest upgrade, the current consensus, from the two analysts covering Pantech Group Holdings Berhad, is for revenues of RM378m in 2021, which would reflect a substantial 30% reduction in Pantech Group Holdings Berhad's sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM320m in 2021. It looks like there's been a clear increase in optimism around Pantech Group Holdings Berhad, given the substantial gain in revenue forecasts.

Check out our latest analysis for Pantech Group Holdings Berhad

Additionally, the consensus price target for Pantech Group Holdings Berhad increased 9.1% to RM0.30, showing a clear increase in optimism from the analysts involved. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Pantech Group Holdings Berhad at RM0.31 per share, while the most bearish prices it at RM0.29. This is a very narrow spread of estimates, implying either that Pantech Group Holdings Berhad is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pantech Group Holdings Berhad's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 30%, a significant reduction from annual growth of 4.1% 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 8.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pantech Group Holdings Berhad is expected to lag the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Pantech Group Holdings Berhad this year. They also expect company revenue to perform worse than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Pantech Group Holdings Berhad.

Still got questions? We have analyst estimates for Pantech Group Holdings Berhad going out to 2023, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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