Downgrade: Here's How This Analyst Sees Saudi Research and Media Group (TADAWUL:4210) Performing In The Near Term

One thing we could say about the covering analyst on Saudi Research and Media Group (TADAWUL:4210) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the downgrade, the latest consensus from Saudi Research and Media Group's sole analyst is for revenues of ر.س3.6b in 2025, which would reflect a notable 8.5% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 54% to ر.س6.25. Previously, the analyst had been modelling revenues of ر.س5.1b and earnings per share (EPS) of ر.س11.01 in 2025. It looks like analyst sentiment has declined substantially, with a sizeable cut to revenue estimates and a pretty serious decline to earnings per share numbers as well.

View our latest analysis for Saudi Research and Media Group

It'll come as no surprise then, to learn that the analyst has cut their price target 22% to ر.س150.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Saudi Research and Media Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Saudi Research and Media Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.8% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 6 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.8% per year. Factoring in the forecast slowdown in growth, it looks like Saudi Research and Media Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Saudi Research and Media Group.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2026, which can be seen for 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.