Brokers Are Upgrading Their Views On Northeast Group Berhad (KLSE:NE) With These New Forecasts

Shareholders in Northeast Group Berhad (KLSE:NE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 7.1% to RM0.68 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the upgrade, the most recent consensus for Northeast Group Berhad from its twin analysts is for revenues of RM119m in 2025 which, if met, would be a notable 14% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 51% to RM0.029. Before this latest update, the analysts had been forecasting revenues of RM108m and earnings per share (EPS) of RM0.024 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Northeast Group Berhad

With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to RM0.96 per share.

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. For example, we noticed that Northeast Group Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 14% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 13% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.4% annually. Not only are Northeast Group Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Northeast Group Berhad could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.