Analysts Are Betting On Saudi Company for Hardware (TADAWUL:4008) With A Big Upgrade This Week

Saudi Company for Hardware (TADAWUL:4008) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this 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 upgrade, the latest consensus from Saudi Company for Hardware's three analysts is for revenues of ر.س1.5b in 2022, which would reflect a huge 26% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing ر.س1.3b of revenue in 2022. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

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Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Saudi Company for Hardware's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 58% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 1.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 12% per year. Not only are Saudi Company for Hardware's revenues expected to improve, it seems that the analysts are also expecting it 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. Analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Saudi Company for Hardware.

Need some more information? At least one of Saudi Company for Hardware's three analysts has provided estimates out to 2024, which can be seen for free on our platform here.

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.