Analysts Have Just Cut Their Emaar Properties PJSC (DFM:EMAAR) Revenue Estimates By 3.1%

Market forces rained on the parade of Emaar Properties PJSC (DFM:EMAAR) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following this downgrade, Emaar Properties PJSC's six analysts are forecasting 2021 revenues to be د.إ21b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of د.إ21b in 2021. The forecasts seem less optimistic overall, with the slight decrease in revenue estimates in the latest consensus update.

Check out our latest analysis for Emaar Properties PJSC

There was no particular change to the consensus price target of د.إ4.54, with Emaar Properties PJSC's latest outlook seemingly not enough to result in a change of valuation. 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. There are some variant perceptions on Emaar Properties PJSC, with the most bullish analyst valuing it at د.إ5.75 and the most bearish at د.إ3.14 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Emaar Properties PJSC's revenue growth is expected to slow, with the forecast 0.9% annualised growth rate until the end of 2021 being well below the historical 9.0% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 1.6% per year. So it's clear that despite the slowdown in growth, Emaar Properties PJSC is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to perform better than companies in the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Emaar Properties PJSC after today.

Unsatisfied? We have estimates for Emaar Properties PJSC from its six analysts out until 2024, and you can see them free on our platform here.

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