Need To Know: Analysts Are Much More Bullish On Emaar Development PJSC (DFM:EMAARDEV) Revenues

Emaar Development PJSC (DFM:EMAARDEV) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the seven analysts covering Emaar Development PJSC are now predicting revenues of د.إ20b in 2024. If met, this would reflect a sizeable 35% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to dip 3.8% to د.إ1.67 in the same period. Prior to this update, the analysts had been forecasting revenues of د.إ17b and earnings per share (EPS) of د.إ1.67 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for Emaar Development PJSC

Even though revenue forecasts increased, there was no change to the consensus price target of د.إ10.18, suggesting the analysts are focused on earnings as the driver of value creation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Emaar Development PJSC is forecast to grow faster in the future than it has in the past, with revenues expected to display 81% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.5% 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 12% annually. Not only are Emaar Development PJSC's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster 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 Emaar Development PJSC.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Emaar Development PJSC analysts - going out to 2026, 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 with high insider ownership.

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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.