Industry Analysts Just Upgraded Their Dallah Healthcare Company (TADAWUL:4004) Revenue Forecasts By 10%

Dallah Healthcare Company (TADAWUL:4004) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for Dallah Healthcare from its six analysts is for revenues of ر.س2.7b in 2022 which, if met, would be a solid 19% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ر.س2.4b in 2022. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

See our latest analysis for Dallah Healthcare

There was no particular change to the consensus price target of ر.س92.36, with Dallah Healthcare'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. Currently, the most bullish analyst values Dallah Healthcare at ر.س127 per share, while the most bearish prices it at ر.س73.70. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Dallah Healthcare's rate of growth is expected to accelerate meaningfully, with the forecast 27% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 12% 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 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Dallah Healthcare is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for 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 Dallah Healthcare.

Need some more information? At least one of Dallah Healthcare's six analysts has provided estimates out to 2024, which can be seen for 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.