Investors in DBS Group Holdings Ltd (SGX:D05) had a good week, as its shares rose 2.8% to close at S$58.50 following the release of its quarterly results. DBS Group Holdings reported S$5.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of S$1.05 beat expectations, being 5.0% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company’s performance, look at what the analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from DBS Group Holdings’ 13 analysts is for revenues of S$23.4b in 2026. This reflects a credible 5.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.6% to S$3.95. Yet prior to the latest earnings, the analysts had been anticipated revenues of S$23.4b and earnings per share (EPS) of S$3.91 in 2026. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.
The analysts reconfirmed their price target of S$59.48, showing that the business is executing well and in line with expectations. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic DBS Group Holdings analyst has a price target of S$68.30 per share, while the most pessimistic values it at S$50.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It’s pretty clear that there is an expectation that DBS Group Holdings’ revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.0% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.4% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than DBS Group Holdings.
The Bottom Line
The most obvious conclusion is that there’s been no major change in the business’ prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that DBS Group Holdings’ revenue is expected to perform worse than the wider 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for DBS Group Holdings going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we’ve discovered 1 warning sign for DBS Group Holdings that you should be aware of.
