Earnings Update: Here's Why Analysts Just Lifted Their Bursa Malaysia Berhad (KLSE:BURSA) Price Target To RM9.00

Investors in Bursa Malaysia Berhad (KLSE:BURSA) had a good week, as its shares rose 5.1% to close at RM9.04 following the release of its annual results. It looks like the results were a bit of a negative overall. While revenues of RM723m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.6% to hit RM0.31 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the 17 analysts covering Bursa Malaysia Berhad are now predicting revenues of RM786.2m in 2026. If met, this would reflect a meaningful 8.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 13% to RM0.35. In the lead-up to this report, the analysts had been modelling revenues of RM770.2m and earnings per share (EPS) of RM0.35 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

See our latest analysis for Bursa Malaysia Berhad

The consensus price target increased 5.1% to RM9.00, with an improved revenue forecast carrying the promise of a more valuable business, in time. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bursa Malaysia Berhad at RM10.30 per share, while the most bearish prices it at RM6.65. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Bursa Malaysia Berhad is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.7% annualised growth until the end of 2026. If achieved, this would be a much better result than the 2.2% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.1% annually. Not only are Bursa Malaysia 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 most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Bursa Malaysia Berhad analysts - going out to 2028, and you can see them free on our platform here.

Even so, be aware that Bursa Malaysia Berhad is showing 1 warning sign in our investment analysis , you should know about...

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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.