Broker Revenue Forecasts For Dallah Healthcare Company (TADAWUL:4004) Are Surging Higher

Celebrations may be in order for Dallah Healthcare Company (TADAWUL:4004) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for Dallah Healthcare from its five analysts is for revenues of ر.س1.5b in 2021 which, if met, would be a meaningful 13% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ر.س1.4b in 2021. So there's been a pretty clear uptick in analyst sentiment after this consensus update, given the slight bump in this year's revenue forecasts.

View our latest analysis for Dallah Healthcare

The consensus price target rose 5.8% to ر.س46.41, with the analysts clearly more optimistic about Dallah Healthcare's prospects following this update. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Dallah Healthcare analyst has a price target of ر.س60.90 per share, while the most pessimistic values it at ر.س35.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Dallah Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 3.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dallah Healthcare to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Dallah Healthcare this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Dallah Healthcare.

Analysts are definitely bullish on Dallah Healthcare, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. 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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