Industry Analysts Just Upgraded Their Abu Dhabi National Oil Company for Distribution PJSC (ADX:ADNOCDIST) Revenue Forecasts By 18%

Celebrations may be in order for Abu Dhabi National Oil Company for Distribution PJSC (ADX:ADNOCDIST) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on Abu Dhabi National Oil Company for Distribution PJSC too, with the stock up 13% to د.إ4.88 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Abu Dhabi National Oil Company for Distribution PJSC's seven analysts is for revenues of د.إ30b in 2022 which - if met - would reflect a decent 9.5% increase on its sales over the past 12 months. Statutory earnings per share are expected to be د.إ0.21, roughly flat on the last 12 months. Before this latest update, the analysts had been forecasting revenues of د.إ25b and earnings per share (EPS) of د.إ0.20 in 2022. Sentiment certainly seems to have improved in recent times, with a solid increase in revenue and a modest lift to earnings per share estimates.

See our latest analysis for Abu Dhabi National Oil Company for Distribution PJSC

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of د.إ4.44, suggesting that the forecast performance does not have a long term impact on the company's 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. The most optimistic Abu Dhabi National Oil Company for Distribution PJSC analyst has a price target of د.إ4.90 per share, while the most pessimistic values it at د.إ3.43. 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. For example, we noticed that Abu Dhabi National Oil Company for Distribution PJSC's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 20% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 0.07% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. Not only are Abu Dhabi National Oil Company for Distribution 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 biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. 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 Abu Dhabi National Oil Company for Distribution PJSC.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Abu Dhabi National Oil Company for Distribution PJSC going out to 2024, and you can see them free on our platform here..

We also provide an overview of the Abu Dhabi National Oil Company for Distribution PJSC Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.