Some Analysts Just Cut Their Oppstar Berhad (KLSE:OPPSTAR) Estimates

One thing we could say about the analysts on Oppstar Berhad (KLSE:OPPSTAR) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from Oppstar Berhad's two analysts is for revenues of RM63m in 2024, which would reflect a modest 6.1% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM73m in 2024. It looks like forecasts have become a fair bit less optimistic on Oppstar Berhad, given the substantial drop in revenue estimates.

See our latest analysis for Oppstar Berhad

Notably, the analysts have cut their price target 15% to RM1.71, suggesting concerns around Oppstar Berhad's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Oppstar Berhad's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that Oppstar Berhad is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Oppstar Berhad's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Oppstar Berhad after today.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Oppstar Berhad's financials, such as concerns around earnings quality. For more information, you can click here to discover this and the 1 other flag we've identified.

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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.