Analysts Just Made A Sizeable Upgrade To Their Saudi Tadawul Group Holding Company (TADAWUL:1111) Forecasts

Celebrations may be in order for Saudi Tadawul Group Holding Company (TADAWUL:1111) 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. Saudi Tadawul Group Holding has also found favour with investors, with the stock up a notable 11% to ر.س272 over the past week. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the six analysts covering Saudi Tadawul Group Holding are now predicting revenues of ر.س1.4b in 2024. If met, this would reflect a major 26% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 56% to ر.س5.06. Prior to this update, the analysts had been forecasting revenues of ر.س1.2b and earnings per share (EPS) of ر.س4.28 in 2024. 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.

See our latest analysis for Saudi Tadawul Group Holding

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.9% to ر.س168 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Saudi Tadawul Group Holding's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Saudi Tadawul Group Holding is forecast to grow faster in the future than it has in the past, with revenues expected to display 26% annualised growth until the end of 2024. If achieved, this would be a much better result than the 7.3% annual decline over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually. So it looks like Saudi Tadawul Group Holding is expected to grow faster than its competitors, at least for a while.

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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Saudi Tadawul Group Holding.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Saudi Tadawul Group Holding going out to 2026, 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.

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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.