Analysts Are Betting On ADNOC Gas plc (ADX:ADNOCGAS) With A Big Upgrade This Week

Shareholders in ADNOC Gas plc (ADX:ADNOCGAS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that ADNOC Gas will make substantially more sales than they'd previously expected.

After the upgrade, the seven analysts covering ADNOC Gas are now predicting revenues of US$24b in 2024. If met, this would reflect a sizeable 24% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$19b of revenue in 2024. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.

See our latest analysis for ADNOC Gas

There was no particular change to the consensus price target of US$1.06, with ADNOC Gas' latest outlook seemingly not enough to result in a change of valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic ADNOC Gas analyst has a price target of US$1.14 per share, while the most pessimistic values it at US$0.95. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting ADNOC Gas' growth to accelerate, with the forecast 53% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.3% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 0.7% per year. It seems obvious that as part of the brighter growth outlook, ADNOC Gas is expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting for revenues to perform better than companies in 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 ADNOC Gas.

Need some more information? At least one of ADNOC Gas' seven analysts has provided estimates out to 2026, 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 backed by insiders.

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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.