Growth Investors: Industry Analysts Just Upgraded Their Aemulus Holdings Berhad (KLSE:AEMULUS) Revenue Forecasts By 12%

Shareholders in Aemulus Holdings Berhad (KLSE:AEMULUS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Aemulus Holdings Berhad will make substantially more sales than they'd previously expected.

After this upgrade, Aemulus Holdings Berhad's two analysts are now forecasting revenues of RM58m in 2021. This would be a solid 14% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing RM52m of revenue in 2021. It looks like there's been a clear increase in optimism around Aemulus Holdings Berhad, given the nice increase in revenue forecasts.

See our latest analysis for Aemulus Holdings Berhad

The consensus price target rose 5.4% to RM1.36, with the analysts clearly more optimistic about Aemulus Holdings Berhad's prospects following this update. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Aemulus Holdings Berhad analyst has a price target of RM1.48 per share, while the most pessimistic values it at RM1.24. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting Aemulus Holdings Berhad's growth to accelerate, with the forecast 14% annualised growth to the end of 2021 ranking favourably alongside historical growth of 0.06% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aemulus Holdings Berhad is expected to grow at about the same rate as 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. The analysts also expect revenues to grow approximately in line with the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Aemulus Holdings Berhad.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flags with Aemulus Holdings Berhad, including concerns around earnings quality. You can learn more, and discover the 2 other flags we've identified, 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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