News Flash: Analysts Just Made A Captivating Upgrade To Their Agthia Group PJSC (ADX:AGTHIA) Forecasts

Shareholders in Agthia Group PJSC (ADX:AGTHIA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Agthia Group PJSC's twin analysts is for revenues of د.إ4.0b in 2022 which - if met - would reflect a major 32% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 46% to د.إ0.40. Prior to this update, the analysts had been forecasting revenues of د.إ3.7b and earnings per share (EPS) of د.إ0.38 in 2022. Sentiment certainly seems to have improved in recent times, with a nice increase in revenue and a small lift in earnings per share estimates.

Check out our latest analysis for Agthia Group PJSC

Despite these upgrades, the analysts have not made any major changes to their price target of د.إ6.90, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Agthia Group PJSC at د.إ7.20 per share, while the most bearish prices it at د.إ6.40. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Agthia Group PJSC's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 4.7% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Agthia Group PJSC is expected to grow much faster than its 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be 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. We have analyst estimates for Agthia Group PJSC going out as far as 2024, and you can see them 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.