Yahoo Finance Analysts Are Updating Their Public Bank Berhad (KLSE:PBBANK) Estimates After Its Annual Results
It's shaping up to be a tough period for Public Bank Berhad (KLSE:PBBANK), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Public Bank Berhad missed analyst forecasts, with revenues of RM13b and statutory earnings per share (EPS) of RM0.34, falling short by 3.7% and 2.2% respectively. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Public Bank Berhad
Taking into account the latest results, the current consensus from Public Bank Berhad's 17 analysts is for revenues of RM13.9b in 2024. This would reflect a satisfactory 7.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 6.2% to RM0.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM14.1b and earnings per share (EPS) of RM0.37 in 2024. 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at RM4.80. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Public Bank Berhad analyst has a price target of RM5.25 per share, while the most pessimistic values it at RM3.80. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Public Bank Berhad's rate of growth is expected to accelerate meaningfully, with the forecast 7.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.3% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Public Bank Berhad is expected to grow at about the same rate as 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, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 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 Public Bank Berhad going out to 2026, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Public Bank Berhad , and understanding this should be part of your investment process.
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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.
