New Forecasts: Here's What Analysts Think The Future Holds For The Company for Cooperative Insurance (TADAWUL:8010)

The Company for Cooperative Insurance (TADAWUL:8010) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the current consensus from Company for Cooperative Insurance's three analysts is for revenues of ر.س11b in 2022 which - if met - would reflect a huge 28% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 171% to ر.س5.79. Before this latest update, the analysts had been forecasting revenues of ر.س9.4b and earnings per share (EPS) of ر.س5.01 in 2022. 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.

Check out our latest analysis for Company for Cooperative Insurance

Despite these upgrades, the consensus price target fell 10% to ر.س88.00, perhaps signalling that the uplift in performance is not expected to last. 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. There are some variant perceptions on Company for Cooperative Insurance, with the most bullish analyst valuing it at ر.س106 and the most bearish at ر.س74.00 per share. 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.

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. The analysts are definitely expecting Company for Cooperative Insurance's growth to accelerate, with the forecast 28% annualised growth to the end of 2022 ranking favourably alongside historical growth of 0.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 3.0% per year. It seems obvious that as part of the brighter growth outlook, Company for Cooperative Insurance is expected to grow faster than the wider industry.

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. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, Company for Cooperative Insurance could be one for the watch list.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Company for Cooperative Insurance analysts - going out to 2024, 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.