The latest analyst coverage could presage a bad day for Genetec Technology Berhad (KLSE:GENETEC), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
After the downgrade, the consensus from Genetec Technology Berhad’s twin analysts is for revenues of RM251m in 2025, which would reflect a chunky 15% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to crater 29% to RM0.07 in the same period. Previously, the analysts had been modelling revenues of RM485m and earnings per share (EPS) of RM0.15 in 2025. Indeed, we can see that the analysts are a lot more bearish about Genetec Technology Berhad’s prospects, administering a pretty serious reduction to revenue estimates and slashing their EPS estimates to boot.
Check out our latest analysis for Genetec Technology Berhad
It’ll come as no surprise then, to learn that the analysts have cut their price target 7.4% to RM3.75.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Genetec Technology Berhad’s past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 12% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 32% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – Genetec Technology Berhad is expected to lag the wider industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Genetec Technology Berhad. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Genetec Technology Berhad’s revenues are expected to grow slower than the wider market. With a serious cut to next year’s expectations and a falling price target, we wouldn’t be surprised if investors were becoming wary of Genetec Technology Berhad.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Genetec Technology Berhad going out as far as 2026, 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.
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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.
