This Just In: Analysts Are Boosting Their Aztech Global Ltd. (SGX:8AZ) Outlook for This Year

Aztech Global Ltd. (SGX:8AZ) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's 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. Investors have been pretty optimistic on Aztech Global too, with the stock up 13% to S$0.68 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

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Following the latest upgrade, the four analysts covering Aztech Global provided consensus estimates of S$352m revenue in 2025, which would reflect a not inconsiderable 19% decline on its sales over the past 12 months. Statutory earnings per share are supposed to sink 11% to S$0.046 in the same period. Before this latest update, the analysts had been forecasting revenues of S$265m and earnings per share (EPS) of S$0.032 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Aztech Global

With these upgrades, we're not surprised to see that the analysts have lifted their price target 38% to S$0.58 per share.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 19% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 5.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 14% per year. It's pretty clear that Aztech Global's revenues are expected to perform substantially worse 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. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Aztech Global.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Aztech Global that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology 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.