Analysts Just Made A Substantial Upgrade To Their Riyadh Cables Group Company (TADAWUL:4142) Forecasts

Celebrations may be in order for Riyadh Cables Group Company (TADAWUL:4142) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The stock price has risen 8.3% to ر.س68.20 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

Following this upgrade, Riyadh Cables Group's dual analysts are forecasting 2023 revenues to be ر.س7.6b, approximately in line with the last 12 months. Statutory earnings per share are presumed to increase 8.8% to ر.س3.27. Before this latest update, the analysts had been forecasting revenues of ر.س6.5b and earnings per share (EPS) of ر.س2.64 in 2023. 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 Riyadh Cables Group

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to ر.س58.50 per share.

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 pretty clear that there is an expectation that Riyadh Cables Group's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past year. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 19% annually. Factoring in the forecast slowdown in growth, it seems obvious that Riyadh Cables Group is also expected to grow slower than other industry participants.

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. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Riyadh Cables Group could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Riyadh Cables Group going out as far as 2025, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.