Rainbows and Unicorns: Mashreqbank PSC (DFM:MASQ) Analysts Just Became A Lot More Optimistic

Shareholders in Mashreqbank PSC (DFM:MASQ) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Mashreqbank PSC from its dual analysts is for revenues of د.إ14b in 2025 which, if met, would be a credible 2.6% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to decline 17% to د.إ36.99 in the same period. Prior to this update, the analysts had been forecasting revenues of د.إ12b and earnings per share (EPS) of د.إ30.59 in 2025. 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.

View our latest analysis for Mashreqbank PSC

It will come as no surprise to learn that the analysts have increased their price target for Mashreqbank PSC 7.5% to د.إ293 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mashreqbank PSC's past performance and to peers in the same industry. We would highlight that Mashreqbank PSC's revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2025 being well below the historical 36% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Mashreqbank PSC.

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, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Mashreqbank PSC could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Mashreqbank PSC going out as far as 2027, 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 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.