Gabungan AQRS Berhad (KLSE:GBGAQRS) Analysts Just Trimmed Their Revenue Forecasts By 15%

The latest analyst coverage could presage a bad day for Gabungan AQRS Berhad (KLSE:GBGAQRS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the latest consensus from Gabungan AQRS Berhad’s three analysts is for revenues of RM251m in 2025, which would reflect a huge 195% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of RM295m in 2025. The consensus view seems to have become more pessimistic on Gabungan AQRS Berhad, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Gabungan AQRS Berhad

Notably, the analysts have cut their price target 19% to RM0.32, suggesting concerns around Gabungan AQRS Berhad’s valuation.

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. For example, we noticed that Gabungan AQRS Berhad’s rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 195% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 13% per year. Not only are Gabungan AQRS Berhad’s revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year’s forecasts, we’d be feeling a little more wary of Gabungan AQRS Berhad going forwards.

Still got questions? We have estimates for Gabungan AQRS Berhad from its three analysts out until 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.