Analysts' Revenue Estimates For Saudi Arabian Mining Company (Ma'aden) (TADAWUL:1211) Are Surging Higher

Shareholders in Saudi Arabian Mining Company (Ma'aden) (TADAWUL:1211) 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 Saudi Arabian Mining Company (Ma'aden) will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Saudi Arabian Mining Company (Ma'aden)'s six analysts is for revenues of ر.س36b in 2022, which would reflect a huge 34% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing ر.س31b of revenue in 2022. It looks like there's been a clear increase in optimism around Saudi Arabian Mining Company (Ma'aden), given the nice gain to revenue forecasts.

View our latest analysis for Saudi Arabian Mining Company (Ma'aden)

The consensus price target rose 13% to ر.س121, with the analysts clearly more optimistic about Saudi Arabian Mining Company (Ma'aden)'s prospects following this update. 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 Saudi Arabian Mining Company (Ma'aden) at ر.س141 per share, while the most bearish prices it at ر.س87.00. 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.

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 Saudi Arabian Mining Company (Ma'aden)'s growth to accelerate, with the forecast 34% annualised growth to the end of 2022 ranking favourably alongside historical growth of 18% per annum 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 8.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Saudi Arabian Mining Company (Ma'aden) to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Saudi Arabian Mining Company (Ma'aden).

Need some more information? We have analyst estimates for Saudi Arabian Mining Company (Ma'aden) going out to 2024, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.