Analysts Are Betting On Agthia Group PJSC (ADX:AGTHIA) With A Big Upgrade This Week

Celebrations may be in order for Agthia Group PJSC (ADX:AGTHIA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from Agthia Group PJSC's dual analysts is for revenues of د.إ3.2b in 2021, which would reflect a sizeable 46% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 252% to د.إ0.32. Before this latest update, the analysts had been forecasting revenues of د.إ2.7b and earnings per share (EPS) of د.إ0.30 in 2021. Sentiment certainly seems to have improved in recent times, with a solid increase in revenue and a slight bump in earnings per share estimates.

See our latest analysis for Agthia Group PJSC

With these upgrades, we're not surprised to see that the analysts have lifted their price target 11% to د.إ6.37 per share. 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. Currently, the most bullish analyst values Agthia Group PJSC at د.إ6.91 per share, while the most bearish prices it at د.إ5.70. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Agthia Group PJSC 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. It's clear from the latest estimates that Agthia Group PJSC's rate of growth is expected to accelerate meaningfully, with the forecast 66% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 1.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Agthia Group PJSC to grow faster than the wider 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Agthia Group PJSC.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, 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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