Growth Investors: Industry Analysts Just Upgraded Their Golden Agri-Resources Ltd (SGX:E5H) Revenue Forecasts By 17%

Shareholders in Golden Agri-Resources Ltd (SGX:E5H) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Golden Agri-Resources will make substantially more sales than they'd previously expected.

After this upgrade, Golden Agri-Resources' three analysts are now forecasting revenues of US$11b in 2024. This would be a decent 9.7% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 288% to US$0.044. Prior to this update, the analysts had been forecasting revenues of US$9.2b and earnings per share (EPS) of US$0.044 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Golden Agri-Resources

It may not be a surprise to see that the analysts have reconfirmed their price target of US$0.20, implying that the uplift in sales is not expected to greatly contribute to Golden Agri-Resources's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Golden Agri-Resources analyst has a price target of US$0.22 per share, while the most pessimistic values it at US$0.19. This is a very narrow spread of estimates, implying either that Golden Agri-Resources is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Golden Agri-Resources' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Golden Agri-Resources'historical trends, as the 13% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.4% per year. So it's pretty clear that Golden Agri-Resources is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Golden Agri-Resources.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Golden Agri-Resources analysts - going out to 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 upgrading 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.

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