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Analyst Estimates: Here's What Brokers Think Of DBS Group Holdings Ltd (SGX:D05) After Its Third-Quarter Report
The analysts might have been a bit too bullish on DBS Group Holdings Ltd (SGX:D05), given that the company fell short of expectations when it released its quarterly results last week. Results look to have been somewhat negative - revenue fell 3.5% short of analyst estimates at S$5.8b, and statutory earnings of S$0.98 per share missed forecasts by 4.9%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for DBS Group Holdings from 14 analysts is for revenues of S$25.7b in 2027. If met, it would imply a solid 14% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 13% to S$4.39. Before this earnings report, the analysts had been forecasting revenues of S$25.9b and earnings per share (EPS) of S$4.42 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for DBS Group Holdings
The analysts reconfirmed their price target of S$77.64, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on DBS Group Holdings, with the most bullish analyst valuing it at S$91.00 and the most bearish at S$63.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.9% annually. So although DBS Group Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on DBS Group Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for DBS Group Holdings going out to 2028, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for DBS Group Holdings that you need to be mindful of.
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