Time To Worry? Analysts Are Downgrading Their Taliworks Corporation Berhad (KLSE:TALIWRK) Outlook

The analysts covering Taliworks Corporation Berhad (KLSE:TALIWRK) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following the downgrade, the most recent consensus for Taliworks Corporation Berhad from its twin analysts is for revenues of RM522m in 2024 which, if met, would be a huge 39% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 44% to RM0.034. Prior to this update, the analysts had been forecasting revenues of RM607m and earnings per share (EPS) of RM0.038 in 2024. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

View our latest analysis for Taliworks Corporation Berhad

Analysts made no major changes to their price target of RM0.90, suggesting the downgrades are not expected to have a long-term impact on Taliworks Corporation Berhad's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Taliworks Corporation Berhad's past performance and to peers in the same industry. For example, we noticed that Taliworks Corporation Berhad's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 39% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.4% per year. So it looks like Taliworks Corporation Berhad is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Taliworks Corporation Berhad. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better 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 Taliworks Corporation Berhad.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Taliworks Corporation Berhad going out as far as 2026, and you can see them 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.