Analysts Just Shaved Their Genetec Technology Berhad (KLSE:GENETEC) Forecasts Dramatically

One thing we could say about the analysts on Genetec Technology Berhad (KLSE:GENETEC) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously. Investors however, have been notably more optimistic about Genetec Technology Berhad recently, with the stock price up an unbelievable 43% to RM1.25 in the past week. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.

Following the latest downgrade, the dual analysts covering Genetec Technology Berhad provided consensus estimates of RM244m revenue in 2025, which would reflect an uneasy 12% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 28% to RM0.063 in the same period. Prior to this update, the analysts had been forecasting revenues of RM348m and earnings per share (EPS) of RM0.11 in 2025. Indeed, we can see that the analysts are a lot more bearish about Genetec Technology Berhad's prospects, administering a sizeable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Genetec Technology Berhad

The consensus price target fell 51% to RM1.83, with the weaker earnings outlook clearly leading analyst valuation estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 12% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 30% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 13% annually for the foreseeable future. It's pretty clear that Genetec Technology Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Genetec Technology Berhad. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Genetec Technology Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Genetec Technology Berhad going out as far as 2027, and you can see them free on our platform here.

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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.