Today is shaping up negative for Oppstar Berhad (KLSE:OPPSTAR) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
After this downgrade, Oppstar Berhad's two analysts are now forecasting revenues of RM83m in 2025. This would be a substantial 52% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 100% to RM0.038. Prior to this update, the analysts had been forecasting revenues of RM94m and earnings per share (EPS) of RM0.047 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a real cut to earnings per share numbers as well.
View our latest analysis for Oppstar Berhad
It'll come as no surprise then, to learn that the analysts have cut their price target 15% to RM1.45.
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. One thing stands out from these estimates, which is that Oppstar Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 52% annualised growth until the end of 2025. If achieved, this would be a much better result than the 6.3% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. Not only are Oppstar Berhad's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
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 Oppstar Berhad. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of Oppstar Berhad.
As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Oppstar Berhad's financials, such as its declining profit margins. Learn more, and discover the 1 other risk 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 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.