Stock Analysis

News Flash: Analysts Just Made A Captivating Upgrade To Their Vodafone Qatar P.Q.S.C. (DSM:VFQS) Forecasts

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Vodafone Qatar P.Q.S.C. (DSM:VFQS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from Vodafone Qatar P.Q.S.C's twin analysts is for revenues of ر.ق2.7b in 2022 which - if met - would reflect an okay 2.4% increase on its sales over the past 12 months. Per-share earnings are expected to increase 3.2% to ر.ق0.09. Prior to this update, the analysts had been forecasting revenues of ر.ق2.4b and earnings per share (EPS) of ر.ق0.07 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

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

DSM:VFQS Earnings and Revenue Growth June 7th 2022

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of ر.ق1.94, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Vodafone Qatar P.Q.S.C analyst has a price target of ر.ق2.17 per share, while the most pessimistic values it at ر.ق1.80. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vodafone Qatar P.Q.S.C is an easy business to forecast or the underlying assumptions are obvious.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Vodafone Qatar P.Q.S.C's revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2022 being well below the historical 4.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Vodafone Qatar P.Q.S.C.

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. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Vodafone Qatar P.Q.S.C could be a good candidate for more research.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Vodafone Qatar P.Q.S.C going out as far as 2024, 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.

Valuation is complex, but we're helping make it simple.

Find out whether Vodafone Qatar P.Q.S.C is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.