News Flash: Analysts Just Made A Dazzling Upgrade To Their Dana Gas PJSC (ADX:DANA) Forecasts

Dana Gas PJSC (ADX:DANA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Dana Gas PJSC will make substantially more sales than they'd previously expected.

After the upgrade, the twin analysts covering Dana Gas PJSC are now predicting revenues of US$561m in 2022. If met, this would reflect a sizeable 76% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to nosedive 33% to US$0.03 in the same period. Before this latest update, the analysts had been forecasting revenues of US$409m and earnings per share (EPS) of US$0.02 in 2022. 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.

See our latest analysis for Dana Gas PJSC

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of د.إ1.17, suggesting that the forecast performance does not have a long term impact on the company's 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 Dana Gas PJSC analyst has a price target of د.إ1.40 per share, while the most pessimistic values it at د.إ0.88. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Dana Gas PJSC is forecast to grow faster in the future than it has in the past, with revenues expected to display 76% annualised growth until the end of 2022. If achieved, this would be a much better result than the 8.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.6% annually. So it looks like Dana Gas PJSC is expected to grow faster than its competitors, at least for a while.

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, 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 Dana Gas PJSC.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for 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 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.