Analysts' Revenue Estimates For Savola Group Company (TADAWUL:2050) Are Surging Higher

Shareholders in Savola Group Company (TADAWUL:2050) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Savola Group will make substantially more sales than they'd previously expected.

After the upgrade, the eight analysts covering Savola Group are now predicting revenues of ر.س29b in 2022. If met, this would reflect an okay 6.6% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing ر.س26b of revenue in 2022. It looks like there's been a clear increase in optimism around Savola Group, given the decent improvement in revenue forecasts.

See our latest analysis for Savola Group

There was no particular change to the consensus price target of ر.س35.45, with Savola Group's latest outlook seemingly not enough to result in a change of valuation. 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. The most optimistic Savola Group analyst has a price target of ر.س42.10 per share, while the most pessimistic values it at ر.س30.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Savola Group shareholders.

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. The analysts are definitely expecting Savola Group's growth to accelerate, with the forecast 14% annualised growth to the end of 2022 ranking favourably alongside historical growth of 0.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Savola Group to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Savola Group this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Savola Group.

Analysts are clearly in love with Savola Group at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other flags we've identified .

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.