Analysts Just Published A Bright New Outlook For Bonia Corporation Berhad's (KLSE:BONIA)

Shareholders in Bonia Corporation Berhad (KLSE:BONIA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Bonia Corporation Berhad has also found favour with investors, with the stock up a worthy 12% to RM2.77 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the two analysts covering Bonia Corporation Berhad are now predicting revenues of RM348m in 2022. If met, this would reflect a sizeable 22% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 39% to RM0.18. Prior to this update, the analysts had been forecasting revenues of RM311m and earnings per share (EPS) of RM0.13 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Bonia Corporation Berhad

With these upgrades, we're not surprised to see that the analysts have lifted their price target 33% to RM3.73 per share. 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 Bonia Corporation Berhad at RM4.46 per share, while the most bearish prices it at RM3.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Bonia Corporation Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 22% annualised growth until the end of 2022. If achieved, this would be a much better result than the 16% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. So it looks like Bonia Corporation Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts 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 Bonia Corporation Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for 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.