Dec 12 (Reuters) - Malaysia's utilities are seeing earnings upgrades by analysts and the sector tops Thomson Reuters StarMine's Analyst Revisions rankings in the south east Asian country with a high score of 80.
While analysts are upbeat on the country's utilities sector, they are bearish on the materials sector, which has the lowest score of 24.
This indicates that analysts are expecting defensive sectors such as utilities to perform better than cyclical stocks, which include metals and mining companies.
Malaysia's national power producer Tenaga Nasional has the best Analysts Revision Model (ARM) score of 97 among its peers. Since Nov. 29, seven out of 21 analysts have raised their earnings estimate on the company by an average of 33.2 percent for the year ending August 2012.
On the other hand, steel producer Lion Industries Corporation Bhd has the worst ARM score of 1 in Malaysia's Materials sector. Since Nov. 30, two out of four analysts have cut their EPS estimates on the company by an average of 30.5 percent for the year ending June 2012.
CONTEXT
Malaysia's Tenaga says to share additional fuel cost with government, Petronas.
StarMine's Analyst Revisions model is a percentile ranking of stocks based on changes in analyst sentiment, with 100 representing the highest rank. This model tracks analysts' upward revisions in earnings and revenue estimates and rating changes.
On its Intrinsic Valuation model, StarMine adjusts for the usually optimistic bias in analysts' EPS forecasts and then uses the resulting growth rate and dividends to determine the valuation. (Reporting by Patturaja Murugaboopathy; Editing by Saumyadeb Chakrabarty)
No comments:
Post a Comment