Analyst Forecasts For Sustained Infrastructure Holding Company (TADAWUL:2190) Are Surging Higher

Sustained Infrastructure Holding Company (TADAWUL:2190) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Sustained Infrastructure Holding has also found favour with investors, with the stock up a worthy 19% to ر.س31.00 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the upgrade, the most recent consensus for Sustained Infrastructure Holding from its dual analysts is for revenues of ر.س1.5b in 2025 which, if met, would be a credible 6.5% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 170% to ر.س1.50. Prior to this update, the analysts had been forecasting revenues of ر.س1.3b and earnings per share (EPS) of ر.س1.05 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Sustained Infrastructure Holding

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of ر.س41.97, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sustained Infrastructure Holding's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Sustained Infrastructure Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.7% annually. Factoring in the forecast slowdown in growth, it looks like Sustained Infrastructure Holding is forecast to grow at about the same rate as 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. They also upgraded their revenue forecasts, although the latest estimates suggest that Sustained Infrastructure Holding will grow in line with the overall market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Sustained Infrastructure Holding.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Sustained Infrastructure Holding going out as far as 2027, 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 with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.