News Flash: One Analyst Just Made A Substantial Upgrade To Their Eastern Province Cement Company (TADAWUL:3080) Forecasts

Eastern Province Cement Company (TADAWUL:3080) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the latest upgrade, Eastern Province Cement's one analyst currently expects revenues in 2024 to be ر.س947m, approximately in line with the last 12 months. Per-share earnings are expected to rise 7.2% to ر.س2.44. Previously, the analyst had been modelling revenues of ر.س859m and earnings per share (EPS) of ر.س2.42 in 2024. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for Eastern Province Cement

It may not be a surprise to see that the analyst has reconfirmed their price target of ر.س47.40, implying that the uplift in sales is not expected to greatly contribute to Eastern Province Cement's valuation in the near term.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 0.2% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 6.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Eastern Province Cement is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Eastern Province Cement.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Eastern Province Cement going out as far as 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.