Broker Revenue Forecasts For Talabat Holding plc (DFM:TALABAT) Are Surging Higher

Celebrations may be in order for Talabat Holding plc (DFM:TALABAT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Talabat Holding has also found favour with investors, with the stock up a worthy 12% to د.إ1.53 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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Following the upgrade, the current consensus from Talabat Holding's eight analysts is for revenues of US$4.0b in 2025 which - if met - would reflect a huge 65% increase on its sales over the past 12 months. Statutory earnings per share are presumed to climb 20% to US$0.021. Previously, the analysts had been modelling revenues of US$3.5b and earnings per share (EPS) of US$0.02 in 2025. Sentiment certainly seems to have improved in recent times, with a nice gain to revenue and a small increase to earnings per share estimates.

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Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of د.إ2.14, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Talabat Holding's rate of growth is expected to accelerate meaningfully, with the forecast 95% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 43% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Talabat Holding is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Talabat Holding.

Still, 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 Talabat Holding going out to 2027, 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.