NationGate Holdings Berhad (KLSE:NATGATE) Analysts Are Reducing Their Forecasts For This Year

One thing we could say about the analysts on NationGate Holdings Berhad (KLSE:NATGATE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the latest downgrade, NationGate Holdings Berhad's twin analysts currently expect revenues in 2023 to be RM836m, approximately in line with the last 12 months. Statutory earnings per share are anticipated to reduce 7.8% to RM0.035 in the same period. Previously, the analysts had been modelling revenues of RM998m and earnings per share (EPS) of RM0.044 in 2023. Indeed, we can see that the analysts are a lot more bearish about NationGate Holdings Berhad's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for NationGate Holdings Berhad

Analysts made no major changes to their price target of RM1.77, suggesting the downgrades are not expected to have a long-term impact on NationGate Holdings Berhad's valuation.

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. The analysts are definitely expecting NationGate Holdings Berhad's growth to accelerate, with the forecast 2.5% annualised growth to the end of 2023 ranking favourably alongside historical growth of 1.7% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, NationGate Holdings Berhad is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that NationGate Holdings Berhad's revenues are expected to grow slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of NationGate Holdings Berhad.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, 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.