Analysts Have Just Cut Their Rabigh Refining and Petrochemical Company (TADAWUL:2380) Revenue Estimates By 16%

The latest analyst coverage could presage a bad day for Rabigh Refining and Petrochemical Company (TADAWUL:2380), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the consensus from dual analysts covering Rabigh Refining and Petrochemical is for revenues of ر.س40b in 2024, implying a small 3.1% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing ر.س48b of revenue in 2024. The consensus view seems to have become more pessimistic on Rabigh Refining and Petrochemical, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Rabigh Refining and Petrochemical

The consensus price target fell 23% to ر.س5.60, with the analysts clearly less optimistic about Rabigh Refining and Petrochemical's valuation following this update.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rabigh Refining and Petrochemical's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 3.1% by the end of 2024. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.6% annually for the foreseeable future. The forecasts do look bearish for Rabigh Refining and Petrochemical, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Rabigh Refining and Petrochemical's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Rabigh Refining and Petrochemical going forwards.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Rabigh Refining and Petrochemical's financials, such as a short cash runway. Learn more, and discover the 1 other flag we've identified, 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 backed by insiders.

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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.