Industry Analysts Just Upgraded Their Masraf Al Rayan (Q.P.S.C.) (DSM:MARK) Revenue Forecasts By 16%

Celebrations may be in order for Masraf Al Rayan (Q.P.S.C.) (DSM:MARK) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Masraf Al Rayan (Q.P.S.C.)'s three analysts is for revenues of ر.ق3.7b in 2021, which would reflect a substantial 24% decline in sales compared to the last year of performance. Statutory earnings per share are presumed to step up 11% to ر.ق0.32. Prior to this update, the analysts had been forecasting revenues of ر.ق3.2b and earnings per share (EPS) of ر.ق0.31 in 2021. Sentiment certainly seems to have improved in recent times, with a nice gain to revenue and a slight bump in earnings per share estimates.

View our latest analysis for Masraf Al Rayan (Q.P.S.C.)

It will come as no surprise to learn that the analysts have increased their price target for Masraf Al Rayan (Q.P.S.C.) 6.3% to ر.ق4.16 on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Masraf Al Rayan (Q.P.S.C.) analyst has a price target of ر.ق5.00 per share, while the most pessimistic values it at ر.ق3.60. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Masraf Al Rayan (Q.P.S.C.)'s past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 24%, a significant reduction from annual growth of 9.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Masraf Al Rayan (Q.P.S.C.) is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Masraf Al Rayan (Q.P.S.C.).

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Masraf Al Rayan (Q.P.S.C.) analysts - going out to 2023, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

When trading Masraf Al Rayan (Q.P.S.C.) or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.