Analysts Are Betting On Abu Dhabi National Oil Company for Distribution PJSC (ADX:ADNOCDIST) With A Big Upgrade This Week

Abu Dhabi National Oil Company for Distribution PJSC (ADX:ADNOCDIST) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's 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 six analysts covering Abu Dhabi National Oil Company for Distribution PJSC are now predicting revenues of د.إ34b in 2023. If met, this would reflect a modest 5.5% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 3.8% to د.إ0.23. Prior to this update, the analysts had been forecasting revenues of د.إ30b and earnings per share (EPS) of د.إ0.23 in 2023. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for Abu Dhabi National Oil Company for Distribution PJSC

It may not be a surprise to see that the analysts have reconfirmed their price target of د.إ4.55, implying that the uplift in sales is not expected to greatly contribute to Abu Dhabi National Oil Company for Distribution PJSC's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Abu Dhabi National Oil Company for Distribution PJSC, with the most bullish analyst valuing it at د.إ5.16 and the most bearish at د.إ3.43 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Abu Dhabi National Oil Company for Distribution PJSC's rate of growth is expected to accelerate meaningfully, with the forecast 5.5% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 4.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Abu Dhabi National Oil Company for Distribution PJSC is expected to grow slower 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. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Abu Dhabi National Oil Company for Distribution PJSC.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Abu Dhabi National Oil Company for Distribution PJSC analysts - going out to 2025, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.