What Does The Future Hold For Deleum Berhad (KLSE:DELEUM)? These Analysts Have Been Cutting Their Estimates

The latest analyst coverage could presage a bad day for Deleum Berhad (KLSE:DELEUM), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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Following the latest downgrade, the four analysts covering Deleum Berhad provided consensus estimates of RM821m revenue in 2026, which would reflect an uneasy 14% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM951m in 2026. The consensus view seems to have become more pessimistic on Deleum Berhad, noting the substantial drop in revenue estimates in this update.

Check out our latest analysis for Deleum Berhad

Notably, the analysts have cut their price target 13% to RM1.45, suggesting concerns around Deleum Berhad's valuation.

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 14% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 14% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.4% annually for the foreseeable future. It's pretty clear that Deleum Berhad's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Deleum Berhad after today.

Looking to learn more? At least one of Deleum Berhad's four analysts has provided estimates out to 2028, which can be seen for free on our platform here.

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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.