New Forecasts: Here's What One Analyst Thinks The Future Holds For Pantech Group Holdings Berhad (KLSE:PANTECH)

Shareholders in Pantech Group Holdings Berhad (KLSE:PANTECH) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst has sharply increased their revenue numbers, with a view that Pantech Group Holdings Berhad will make substantially more sales than they'd previously expected.

Following the upgrade, the consensus from one analyst covering Pantech Group Holdings Berhad is for revenues of RM470m in 2021, implying a discernible 4.9% decline in sales compared to the last 12 months. Before the latest update, the analyst was foreseeing RM350m of revenue in 2021. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.

See our latest analysis for Pantech Group Holdings Berhad

Additionally, the consensus price target for Pantech Group Holdings Berhad increased 23% to RM0.37, showing a clear increase in optimism from the analyst involved. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Pantech Group Holdings Berhad analyst has a price target of RM0.45 per share, while the most pessimistic values it at RM0.29. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 the forecast 4.9% revenue decline a notable change from historical growth of 2.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 20% next year. 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 the analyst 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 a nice increase in the price target, with the analyst apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Pantech Group Holdings Berhad.

Looking to learn more? One Pantech Group Holdings Berhad broker/analyst has provided estimates out to 2022, which can be seen for 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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This article by Simply Wall St is general in nature. 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.
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