Need To Know: Analysts Are Much More Bullish On Masraf Al Rayan (Q.P.S.C.) (DSM:MARK) Revenues

Masraf Al Rayan (Q.P.S.C.) (DSM:MARK) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from Masraf Al Rayan (Q.P.S.C.)'s three analysts is for revenues of ر.ق4.9b in 2021, which would reflect a decent 9.2% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing ر.ق3.4b of revenue in 2021. It looks like there's been a clear increase in optimism around Masraf Al Rayan (Q.P.S.C.), given the great increase in revenue forecasts.

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

We'd point out that there was no major changes to their price target of ر.ق4.34, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. Currently, the most bullish analyst values Masraf Al Rayan (Q.P.S.C.) at ر.ق5.40 per share, while the most bearish prices it at ر.ق3.77. 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.

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 Masraf Al Rayan (Q.P.S.C.)'s rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 7.2% 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 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Masraf Al Rayan (Q.P.S.C.) is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Masraf Al Rayan (Q.P.S.C.) this year. They're also forecasting more rapid revenue growth 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 Masraf Al Rayan (Q.P.S.C.).

Analysts are clearly in love with Masraf Al Rayan (Q.P.S.C.) at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other risk we've identified .

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.

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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.
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