Bullish: Analysts Just Made A Decent Upgrade To Their DRB-HICOM Berhad (KLSE:DRBHCOM) Forecasts
Celebrations may be in order for DRB-HICOM Berhad (KLSE:DRBHCOM) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. 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.
After this upgrade, DRB-HICOM Berhad's three analysts are now forecasting revenues of RM20b in 2026. This would be a solid 12% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to plummet 59% to RM0.089 in the same period. Previously, the analysts had been modelling revenues of RM18b and earnings per share (EPS) of RM0.08 in 2026. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for DRB-HICOM Berhad
It will come as no surprise to learn that the analysts have increased their price target for DRB-HICOM Berhad 11% to RM1.15 on the back of these upgrades.
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 analysts are definitely expecting DRB-HICOM Berhad's growth to accelerate, with the forecast 12% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect DRB-HICOM Berhad to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at DRB-HICOM Berhad.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for DRB-HICOM Berhad going out to 2028, and you can see them 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 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.