Analysts Just Made A Notable Upgrade To Their Emirates NBD Bank PJSC (DFM:EMIRATESNBD) Forecasts

Emirates NBD Bank PJSC (DFM:EMIRATESNBD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After this upgrade, Emirates NBD Bank PJSC's nine analysts are now forecasting revenues of د.إ30b in 2022. This would be a huge 38% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to grow 19% to د.إ1.75. Prior to this update, the analysts had been forecasting revenues of د.إ25b and earnings per share (EPS) of د.إ1.56 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Emirates NBD Bank PJSC

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of د.إ16.95, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Emirates NBD Bank PJSC analyst has a price target of د.إ19.60 per share, while the most pessimistic values it at د.إ15.30. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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. It's clear from the latest estimates that Emirates NBD Bank PJSC's rate of growth is expected to accelerate meaningfully, with the forecast 92% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 6.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Emirates NBD Bank PJSC to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Emirates NBD Bank PJSC.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Emirates NBD Bank PJSC going out to 2024, 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 upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.