Analysts Just Shipped A Captivating Upgrade To Their Seera Holding Group (TADAWUL:1810) Estimates

Shareholders in Seera Holding Group (TADAWUL:1810) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Seera Holding Group's three analysts are now forecasting revenues of ر.س2.2b in 2022. This would be a sizeable 65% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of ر.س0.76 per share this year. Before this latest update, the analysts had been forecasting revenues of ر.س1.9b and earnings per share (EPS) of ر.س0.46 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Seera Holding Group

Despite these upgrades, the analysts have not made any major changes to their price target of ر.س20.97, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. Currently, the most bullish analyst values Seera Holding Group at ر.س22.00 per share, while the most bearish prices it at ر.س19.90. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Seera Holding Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 65% annualised growth until the end of 2022. If achieved, this would be a much better result than the 14% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 24% per year. Not only are Seera Holding Group'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 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, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Seera Holding Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Seera Holding Group analysts - going out to 2024, and you can see them 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.