One Dubai Financial Market P.J.S.C. (DFM:DFM) Analyst Just Slashed Their 2023 Revenue Estimates

Today is shaping up negative for Dubai Financial Market P.J.S.C. (DFM:DFM) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from one analyst covering Dubai Financial Market P.J.S.C is for revenues of د.إ258m in 2023, implying a painful 29% decline in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of د.إ287m in 2023. The consensus view seems to have become more pessimistic on Dubai Financial Market P.J.S.C, noting the substantial drop in revenue estimates in this update.

View our latest analysis for Dubai Financial Market P.J.S.C

There was no particular change to the consensus price target of د.إ1.44, with Dubai Financial Market P.J.S.C's latest outlook seemingly not enough to result in a change of valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Dubai Financial Market P.J.S.C analyst has a price target of د.إ1.62 per share, while the most pessimistic values it at د.إ1.29. Even so, with a relatively close grouping of estimates, it looks like the analyst is quite confident in their valuations, suggesting Dubai Financial Market P.J.S.C is an easy business to forecast or the underlying assumptions are obvious.

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. Over the past five years, revenues have declined around 1.7% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 37% decline in revenue until the end of 2023. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 11% annually. So it's pretty clear that, while it does have declining revenues, the analyst also expect Dubai Financial Market P.J.S.C to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Dubai Financial Market P.J.S.C after today.

Need some more information? One Dubai Financial Market P.J.S.C broker/analyst has provided estimates out to 2025, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.