Shareholders in AGX Group Berhad (KLSE:AGX) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that AGX Group Berhad will make substantially more sales than they'd previously expected.
Following the upgrade, the current consensus from AGX Group Berhad's twin analysts is for revenues of RM363m in 2026 which - if met - would reflect an okay 5.2% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 53% to RM0.052. Prior to this update, the analysts had been forecasting revenues of RM319m and earnings per share (EPS) of RM0.05 in 2026. The forecasts seem more optimistic now, with a substantial gain in revenue and a small lift in earnings per share estimates.
Check out our latest analysis for AGX Group Berhad
It will come as no surprise to learn that the analysts have increased their price target for AGX Group Berhad 17% to RM0.69 on the back of these upgrades.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that AGX Group Berhad's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 30% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that AGX Group Berhad is also expected to grow slower than other industry participants.
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, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at AGX Group Berhad.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for AGX Group Berhad going out as far as 2027, 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.