The latest analyst coverage could presage a bad day for CapitaLand Investment Limited (SGX:9CI), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.
Following the latest downgrade, the twelve analysts covering CapitaLand Investment provided consensus estimates of S$2.5b revenue in 2025, which would reflect a definite 12% decline on its sales over the past 12 months. Per-share earnings are expected to shoot up 45% to S$0.14. Prior to this update, the analysts had been forecasting revenues of S$2.9b and earnings per share (EPS) of S$0.16 in 2025. Indeed, we can see that the analysts are a lot more bearish about CapitaLand Investment's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
See our latest analysis for CapitaLand Investment
SGX:9CI Earnings and Revenue Growth March 10th 2025
Despite the cuts to forecast earnings, there was no real change to the S$3.56 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.
Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 6.3% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.3% per year. The forecasts do look bearish for CapitaLand Investment, since they're expecting it to shrink faster than the 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 CapitaLand Investment. Unfortunately they also downgraded their revenue estimates, and our aggregation of analyst estimates suggests that CapitaLand Investment revenue is expected to perform worse than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of CapitaLand Investment.
Not only have the analysts been downgrading the stock, but it looks like CapitaLand Investment might find it hard to maintain its dividends, if these forecasts prove accurate. You can learn more, and discover the 1 possible risk we've identified, for 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.