Need To Know: Analysts Are Much More Bullish On Beshom Holdings Berhad (KLSE:BESHOM)

Beshom Holdings Berhad (KLSE:BESHOM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After the upgrade, the three analysts covering Beshom Holdings Berhad are now predicting revenues of RM281m in 2023. If met, this would reflect a sizeable 34% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 37% to RM0.13. Previously, the analysts had been modelling revenues of RM229m and earnings per share (EPS) of RM0.11 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Beshom Holdings Berhad

It will come as no surprise to learn that the analysts have increased their price target for Beshom Holdings Berhad 5.4% to RM1.81 on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Beshom Holdings Berhad, with the most bullish analyst valuing it at RM1.93 and the most bearish at RM1.66 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Beshom Holdings Berhad is an easy business to forecast or the underlying assumptions are obvious.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Beshom Holdings Berhad's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Beshom Holdings Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 34% annualised growth until the end of 2023. If achieved, this would be a much better result than the 16% annual decline 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 24% per year. Not only are Beshom Holdings Berhad'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 upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Beshom Holdings Berhad could be worth investigating further.

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 Beshom Holdings Berhad going out to 2025, 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. 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.