News Flash: Analysts Just Made A Meaningful Upgrade To Their Emaar Development PJSC (DFM:EMAARDEV) Forecasts

Shareholders in Emaar Development PJSC (DFM:EMAARDEV) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Emaar Development PJSC will make substantially more sales than they'd previously expected.

After this upgrade, Emaar Development PJSC's eleven analysts are now forecasting revenues of د.إ11b in 2023. This would be a credible 6.7% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 3.6% to د.إ0.99. Before this latest update, the analysts had been forecasting revenues of د.إ9.6b and earnings per share (EPS) of د.إ0.98 in 2023. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Emaar Development PJSC

Even though revenue forecasts increased, there was no change to the consensus price target of د.إ6.67, suggesting the analysts are focused on earnings as the driver of value creation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Emaar Development PJSC, with the most bullish analyst valuing it at د.إ9.00 and the most bearish at د.إ5.70 per share. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 9.0% annualised growth until the end of 2023. If achieved, this would be a much better result than the 0.4% 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 7.4% annually. So it looks like Emaar Development PJSC is expected to grow at about the same rate as 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 forecasts, although the latest estimates suggest that Emaar Development PJSC will grow in line with the overall 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.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Emaar Development PJSC going out to 2025, and you can see them 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. 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.