UWC Berhad (KLSE:UWC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s forecasts. 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. UWC Berhad has also found favour with investors, with the stock up a worthy 14% to RM3.20 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the current consensus from UWC Berhad’s four analysts is for revenues of RM370m in 2025 which – if met – would reflect a huge 28% increase on its sales over the past 12 months. Per-share earnings are expected to surge 348% to RM0.072. Previously, the analysts had been modelling revenues of RM332m and earnings per share (EPS) of RM0.063 in 2025. So we can see there’s been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for UWC Berhad
With these upgrades, we’re not surprised to see that the analysts have lifted their price target 28% to RM3.36 per share.
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. It’s clear from the latest estimates that UWC Berhad’s rate of growth is expected to accelerate meaningfully, with the forecast 28% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect UWC Berhad to grow faster than the wider industry.
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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at UWC Berhad.
Better yet, our automated discounted cash flow calculation (DCF) suggests UWC Berhad could be moderately undervalued. You can learn more about our valuation methodology 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.
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