Analysts' Revenue Estimates For Retal Urban Development Company (TADAWUL:4322) Are Surging Higher

Retal Urban Development Company (TADAWUL:4322) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Retal Urban Development will make substantially more sales than they'd previously expected.

After this upgrade, Retal Urban Development's dual analysts are now forecasting revenues of ر.س2.0b in 2024. This would be a notable 14% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 22% to ر.س0.55. Previously, the analysts had been modelling revenues of ر.س1.7b and earnings per share (EPS) of ر.س0.52 in 2024. The forecasts seem more optimistic now, with a substantial gain in revenue and a small increase to earnings per share estimates.

See our latest analysis for Retal Urban Development

With these upgrades, we're not surprised to see that the analysts have lifted their price target 16% to ر.س14.00 per share.

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. We can infer from the latest estimates that forecasts expect a continuation of Retal Urban Development'shistorical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 18% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 20% per year. So although Retal Urban Development is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Retal Urban Development.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning signs with Retal Urban Development, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

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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.

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