Analysts Are Betting On TASCO Berhad (KLSE:TASCO) With A Big Upgrade This Week

Shareholders in TASCO Berhad (KLSE:TASCO) 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 the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the consensus from three analysts covering TASCO Berhad is for revenues of RM1.0b in 2022, implying a small 3.2% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM916m in 2022. It looks like there's been a clear increase in optimism around TASCO Berhad, given the substantial gain in revenue forecasts.

Check out our latest analysis for TASCO Berhad

We'd point out that there was no major changes to their price target of RM1.45, suggesting the latest estimates were not enough to shift their view on the value of the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on TASCO Berhad, with the most bullish analyst valuing it at RM1.75 and the most bearish at RM1.13 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We would highlight that sales are expected to reverse, with a forecast 3.2% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 10% 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 11% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - TASCO Berhad is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at TASCO Berhad.

Of course, there's always more to the story. At least one of TASCO Berhad's three analysts has provided estimates out to 2024, which can be seen for free on our platform here.

We also provide an overview of the TASCO Berhad Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

If you're looking for stocks to buy, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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