Upgrade: Analysts Just Made A Captivating Increase To Their Pantech Group Holdings Berhad (KLSE:PANTECH) Forecasts

By
Simply Wall St
Published
July 24, 2021
KLSE:PANTECH
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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 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.

After this upgrade, Pantech Group Holdings Berhad's sole analyst is now forecasting revenues of RM643m in 2022. This would be a solid 16% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to descend 11% to RM0.056 in the same period. Previously, the analyst had been modelling revenues of RM540m and earnings per share (EPS) of RM0.041 in 2022. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for Pantech Group Holdings Berhad

earnings-and-revenue-growth
KLSE:PANTECH Earnings and Revenue Growth July 25th 2021

It will come as no surprise to learn that the analyst has increased their price target for Pantech Group Holdings Berhad 15% to RM0.55 on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Pantech Group Holdings Berhad analyst has a price target of RM0.64 per share, while the most pessimistic values it at RM0.45. 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. The analyst is definitely expecting Pantech Group Holdings Berhad's growth to accelerate, with the forecast 16% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Pantech Group Holdings Berhad to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Pantech Group Holdings Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Pantech Group Holdings Berhad going out as far as 2024, 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. 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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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.