This Analyst Just Made A Massive Upgrade To Their Abu Dhabi National Hotels Company PJSC (ADX:ADNH) Earnings Forecasts

Abu Dhabi National Hotels Company PJSC (ADX:ADNH) shareholders will have a reason to smile today, with the covering analyst 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.

Following the upgrade, the most recent consensus for Abu Dhabi National Hotels Company PJSC from its solo analyst is for revenues of د.إ3.0b in 2024 which, if met, would be a major 83% increase on its sales over the past 12 months. Per-share earnings are expected to accumulate 5.6% to د.إ0.11. Previously, the analyst had been modelling revenues of د.إ1.7b and earnings per share (EPS) of د.إ0.038 in 2024. 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 Abu Dhabi National Hotels Company PJSC

Despite these upgrades, the consensus price target fell 11% to د.إ0.72, perhaps signalling that the uplift in performance is not expected to last.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Abu Dhabi National Hotels Company PJSC's growth to accelerate, with the forecast 83% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Abu Dhabi National Hotels Company PJSC is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The declining price target is a puzzle, but still - with a serious upgrade to this year's expectations, it might be time to take another look at Abu Dhabi National Hotels Company PJSC.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Abu Dhabi National Hotels Company PJSC going out as far as 2026, and you can see them free on our platform here.

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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.

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