Need To Know: Analysts Are Much More Bullish On Abu Dhabi Ports Company PJSC (ADX:ADPORTS) Revenues

Celebrations may be in order for Abu Dhabi Ports Company PJSC (ADX:ADPORTS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Abu Dhabi Ports Company PJSC's four analysts is for revenues of د.إ11b in 2023 which - if met - would reflect a major 78% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 29% to د.إ0.32. Prior to this update, the analysts had been forecasting revenues of د.إ9.4b and earnings per share (EPS) of د.إ0.30 in 2023. Sentiment certainly seems to have improved in recent times, with a substantial gain in revenue and a small lift in earnings per share estimates.

Check out our latest analysis for Abu Dhabi Ports Company PJSC

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of د.إ7.39, suggesting that the forecast performance does not have a long term impact on the company's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Abu Dhabi Ports Company PJSC at د.إ8.00 per share, while the most bearish prices it at د.إ6.63. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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. The analysts are definitely expecting Abu Dhabi Ports Company PJSC's growth to accelerate, with the forecast 116% annualised growth to the end of 2023 ranking favourably alongside historical growth of 55% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Abu Dhabi Ports Company PJSC 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Abu Dhabi Ports Company PJSC.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Abu Dhabi Ports Company PJSC that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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.