One SLP Resources Berhad (KLSE:SLP) Analyst Just Made A Major Cut To Next Year's Estimates

Explore SLP Resources Berhad's Fair Values from the Community and select yours

The analyst covering SLP Resources Berhad (KLSE:SLP) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the downgrade, the consensus from solitary analyst covering SLP Resources Berhad is for revenues of RM145m in 2025, implying a considerable 9.7% decline in sales compared to the last 12 months. Per-share earnings are expected to accumulate 2.0% to RM0.035. Prior to this update, the analyst had been forecasting revenues of RM174m and earnings per share (EPS) of RM0.05 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

See our latest analysis for SLP Resources Berhad

It'll come as no surprise then, to learn that the analyst has cut their price target 11% to RM0.89.

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 9.7% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 1.2% 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 9.6% per year. It's pretty clear that SLP Resources Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for SLP Resources Berhad. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of SLP Resources Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for SLP Resources Berhad going out as far as 2026, 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 backed by insiders.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.