New Forecasts: Here's What Analysts Think The Future Holds For Industries Qatar Q.P.S.C. (DSM:IQCD)

Celebrations may be in order for Industries Qatar Q.P.S.C. (DSM:IQCD) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Industries Qatar Q.P.S.C's eight analysts is for revenues of ر.ق9.4b in 2021, which would reflect a substantial 27% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 112% to ر.ق0.69. Prior to this update, the analysts had been forecasting revenues of ر.ق8.4b and earnings per share (EPS) of ر.ق0.53 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Industries Qatar Q.P.S.C

With these upgrades, we're not surprised to see that the analysts have lifted their price target 10% to ر.ق12.63 per share. 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 Industries Qatar Q.P.S.C analyst has a price target of ر.ق14.40 per share, while the most pessimistic values it at ر.ق6.96. 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.

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 Industries Qatar Q.P.S.C's growth to accelerate, with the forecast 38% annualised growth to the end of 2021 ranking favourably alongside historical growth of 6.8% per annum 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 8.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Industries Qatar Q.P.S.C is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Industries Qatar Q.P.S.C could be worth investigating further.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential concern with Industries Qatar Q.P.S.C, including the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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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