This Just In: Analysts Are Boosting Their Ranhill Utilities Berhad (KLSE:RANHILL) Outlook for This Year

Ranhill Utilities Berhad (KLSE:RANHILL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following this upgrade, Ranhill Utilities Berhad's four analysts are forecasting 2024 revenues to be RM2.3b, approximately in line with the last 12 months. Statutory earnings per share are anticipated to decrease 6.4% to RM0.042 in the same period. Previously, the analysts had been modelling revenues of RM2.1b and earnings per share (EPS) of RM0.038 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Ranhill Utilities Berhad

It will come as no surprise to learn that the analysts have increased their price target for Ranhill Utilities Berhad 10% to RM1.02 on the back of these upgrades.

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. It's pretty clear that there is an expectation that Ranhill Utilities Berhad's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 6.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Ranhill Utilities Berhad is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Ranhill Utilities Berhad could be worth investigating further.

Analysts are clearly in love with Ranhill Utilities Berhad at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 3 other warning signs we've identified, 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 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.