Broker Revenue Forecasts For Sime Darby Property Berhad (KLSE:SIMEPROP) Are Surging Higher

Shareholders in Sime Darby Property Berhad (KLSE:SIMEPROP) 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 Sime Darby Property Berhad from its eleven analysts is for revenues of RM2.3b in 2021 which, if met, would be a notable 11% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting RM0.042 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of RM2.1b and earnings per share (EPS) of RM0.041 in 2021. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Sime Darby Property Berhad

It may not be a surprise to see that the analysts have reconfirmed their price target of RM0.68, implying that the uplift in sales is not expected to greatly contribute to Sime Darby Property Berhad's valuation in the near term. 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. Currently, the most bullish analyst values Sime Darby Property Berhad at RM0.88 per share, while the most bearish prices it at RM0.42. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Sime Darby Property Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2021. If achieved, this would be a much better result than the 2.8% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.6% annually. So it looks like Sime Darby Property Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Sime Darby Property Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sime Darby Property Berhad going out to 2023, 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.

When trading Sime Darby Property Berhad or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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