Analysts Are Betting On SABIC Agri-Nutrients Company (TADAWUL:2020) With A Big Upgrade This Week

SABIC Agri-Nutrients Company (TADAWUL:2020) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 5.7% to ر.س155 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After the upgrade, the seven analysts covering SABIC Agri-Nutrients are now predicting revenues of ر.س17b in 2022. If met, this would reflect a huge 30% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing ر.س13b of revenue in 2022. It looks like there's been a clear increase in optimism around SABIC Agri-Nutrients, given the chunky increase in revenue forecasts.

Check out our latest analysis for SABIC Agri-Nutrients

We'd point out that there was no major changes to their price target of ر.س174, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. Currently, the most bullish analyst values SABIC Agri-Nutrients at ر.س220 per share, while the most bearish prices it at ر.س155. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting SABIC Agri-Nutrients' growth to accelerate, with the forecast 42% annualised growth to the end of 2022 ranking favourably alongside historical growth of 25% 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 4.9% per year. It seems obvious that as part of the brighter growth outlook, SABIC Agri-Nutrients 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 lifted their revenue estimates for this year. They're also forecasting for revenues to perform better than companies in the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at SABIC Agri-Nutrients.

Better yet, our automated discounted cash flow calculation (DCF) suggests SABIC Agri-Nutrients could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.