Stock Analysis

Analysts Are Betting On D & O Green Technologies Berhad (KLSE:D&O) With A Big Upgrade This Week

KLSE:D&O
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Shareholders in D & O Green Technologies Berhad (KLSE:D&O) 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. D & O Green Technologies Berhad has also found favour with investors, with the stock up a noteworthy 12% to RM4.90 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After this upgrade, D & O Green Technologies Berhad's three analysts are now forecasting revenues of RM962m in 2021. This would be a huge 67% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM869m in 2021. It looks like there's been a clear increase in optimism around D & O Green Technologies Berhad, given the solid increase in revenue forecasts.

Check out our latest analysis for D & O Green Technologies Berhad

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KLSE:D&O Earnings and Revenue Growth April 8th 2021

The consensus price target rose 12% to RM4.04, with the analysts clearly more optimistic about D & O Green Technologies Berhad's prospects following this update. 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 D & O Green Technologies Berhad at RM5.50 per share, while the most bearish prices it at RM1.54. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting D & O Green Technologies Berhad's growth to accelerate, with the forecast 67% annualised growth to the end of 2021 ranking favourably alongside historical growth of 4.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect D & O Green Technologies Berhad to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for D & O Green Technologies Berhad this year. They're also forecasting more rapid revenue growth than 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 D & O Green Technologies Berhad.

Of course, there's always more to the story. At least one of D & O Green Technologies Berhad's three analysts has provided estimates out to 2023, 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. 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.
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