Analysts are much more optimistic about NationGate Holdings Berhad’s (KLSE:NATGATE) earnings

Shareholders in NationGate Holdings Berhad (KLSE:NATGATE) may be pleased to learn that analysts have just made a significant upgrade to their near-term forecasts. The sales forecast for this year has been revised and analysts are now much more optimistic about the sales pipeline.

Following the upgrade, NationGate Holdings Berhad’s four analysts are now forecasting revenue of RM2.6bil in 2024. If achieved, this would mark a solid 9.9% increase in sales compared to the last 12 months. Statutory earnings per share are expected to be RM0.049, approximately in line with the last 12 months. Previously, analysts had forecast revenue of RM2.1 billion and earnings per share (EPS) of RM0.048 in 2024. Sentiment certainly appears to have improved recently, with a significant increase in revenue and a small increase in earnings per share estimates.

Check out our latest analysis for NationGate Holdings Berhad

It will come as no surprise to learn that analysts have increased their target price for NationGate Holdings Berhad by 6.4% to RM2.30 following these upgrades.

One way to get more context on these forecasts is to look at them in comparison to past performance and the performance of other companies in the same industry. We would like to highlight that NationGate Holdings Berhad’s revenue growth is expected to slow, with the forecast annual growth rate of 9.9% through the end of 2024 well below the historical growth of 24% per year over the past five years. Compare this to other companies (with analyst forecasts) in the industry, which are expected to report 19% annual revenue growth overall. So it’s pretty clear that while revenue growth is expected to slow, the overall industry is also expected to grow faster than NationGate Holdings Berhad.

The most important thing to take away from this upgrade is that analysts have raised their earnings per share estimates for this year as they expect business conditions to improve. Encouragingly, analysts have also raised their revenue estimates, and their forecasts suggest that the company is expected to grow more slowly than the overall market. The price target was also raised significantly as analysts apparently felt that the company’s intrinsic value was improving. Given that analysts appear to be expecting a significant improvement in the sales pipeline, now could be the right time to take another look at NationGate Holdings Berhad.

With this in mind, the company’s long-term earnings performance is much more important than next year. We have estimates – from multiple NationGate Holdings Berhad analysts – out to 2026, which you can see for free on our platform here.

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