New Forecasts: Here's What Analysts Think The Future Holds For Agthia Group PJSC (ADX:AGTHIA)

Shareholders in Agthia Group PJSC (ADX:AGTHIA) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After this upgrade, Agthia Group PJSC's solo analyst is now forecasting revenues of د.إ2.7b in 2021. This would be a major 30% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 510% to د.إ0.30. Prior to this update, the analyst had been forecasting revenues of د.إ2.2b and earnings per share (EPS) of د.إ0.22 in 2021. 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.

View our latest analysis for Agthia Group PJSC

With these upgrades, we're not surprised to see that the analyst has lifted their price target 8.8% to د.إ4.64 per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Agthia Group PJSC at د.إ5.70 per share, while the most bearish prices it at د.إ3.90. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Agthia Group PJSC shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Agthia Group PJSC's past performance and to peers in the same industry. It's clear from the latest estimates that Agthia Group PJSC's rate of growth is expected to accelerate meaningfully, with the forecast 30% revenue growth noticeably faster than its historical growth of 1.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Agthia Group PJSC to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Agthia Group PJSC.

The covering analyst is clearly in love with Agthia Group PJSC at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 1 other flag we've identified, 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. 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.
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