Broker Revenue Forecasts For Southern Province Cement Company (TADAWUL:3050) Are Surging Higher

Celebrations may be in order for Southern Province Cement Company (TADAWUL:3050) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Southern Province Cement's five analysts is for revenues of ر.س1.3b in 2023, which would reflect a reasonable 7.2% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ر.س1.1b in 2023. It looks like there's been a clear increase in optimism around Southern Province Cement, given the decent improvement in revenue forecasts.

See our latest analysis for Southern Province Cement

There was no particular change to the consensus price target of ر.س55.32, with Southern Province Cement'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 Southern Province Cement at ر.س64.00 per share, while the most bearish prices it at ر.س48.00. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Southern Province Cement's growth to accelerate, with the forecast 9.7% annualised growth to the end of 2023 ranking favourably alongside historical growth of 5.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Southern Province Cement is expected to grow slower 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 also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Southern Province Cement.

Unanswered questions? We have analyst estimates for Southern Province Cement going out to 2025, 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.