Rainbows and Unicorns: Al Hassan Ghazi Ibrahim Shaker Company (TADAWUL:1214) Analysts Just Became A Lot More Optimistic

Al Hassan Ghazi Ibrahim Shaker Company (TADAWUL:1214) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After this upgrade, Al Hassan Ghazi Ibrahim Shaker's twin analysts are now forecasting revenues of ر.س1.1b in 2021. This would be a decent 10% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 56% to ر.س0.43. Prior to this update, the analysts had been forecasting revenues of ر.س998m and earnings per share (EPS) of ر.س0.31 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.

Check out our latest analysis for Al Hassan Ghazi Ibrahim Shaker

With these upgrades, we're not surprised to see that the analysts have lifted their price target 30% to ر.س20.50 per share. 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 Al Hassan Ghazi Ibrahim Shaker analyst has a price target of ر.س25.00 per share, while the most pessimistic values it at ر.س16.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Al Hassan Ghazi Ibrahim Shaker is forecast to grow faster in the future than it has in the past, with revenues expected to display 14% annualised growth until the end of 2021. If achieved, this would be a much better result than the 17% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.0% annually. Not only are Al Hassan Ghazi Ibrahim Shaker's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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 this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Al Hassan Ghazi Ibrahim Shaker could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

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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