Industry Analysts Just Made A Sizeable Upgrade To Their UOA Development Bhd (KLSE:UOADEV) Revenue Forecasts

Shareholders in UOA Development Bhd (KLSE:UOADEV) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for UOA Development Bhd from its five analysts is for revenues of RM572m in 2023 which, if met, would be a decent 19% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing RM494m of revenue in 2023. It looks like there's been a clear increase in optimism around UOA Development Bhd, given the substantial gain in revenue forecasts.

See our latest analysis for UOA Development Bhd

We'd point out that there was no major changes to their price target of RM1.73, suggesting the latest estimates were not enough to shift their view on the value of the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values UOA Development Bhd at RM1.86 per share, while the most bearish prices it at RM1.65. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UOA Development Bhd's past performance and to peers in the same industry. For example, we noticed that UOA Development Bhd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 19% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 22% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.7% per year. Not only are UOA Development Bhd's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at UOA Development Bhd.

Of course, there's always more to the story. We have analyst estimates for UOA Development Bhd going out to 2025, 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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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.