Investors in Rasan Information Technology Company (TADAWUL:8313) had a good week, as its shares rose 9.1% to close at ر.س138 following the release of its interim results. Results were roughly in line with estimates, with revenues of ر.س517m and statutory earnings per share of ر.س3.26. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the current consensus from Rasan Information Technology's five analysts is for revenues of ر.س1.06b in 2026. This would reflect a decent 14% increase on its revenue over the past 12 months. Statutory per share are forecast to be ر.س4.54, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ر.س1.05b and earnings per share (EPS) of ر.س4.65 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 6.2% to ر.س162, suggesting that these impacts are not expected to weigh on the stock's value in the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Rasan Information Technology, with the most bullish analyst valuing it at ر.س180 and the most bearish at ر.س135 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Rasan Information Technology's revenue growth is expected to slow, with the forecast 30% annualised growth rate until the end of 2026 being well below the historical 52% p.a. growth over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 2.9% per year. So it's clear that despite the slowdown in growth, Rasan Information Technology is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Rasan Information Technology's revenue is expected to perform better than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Rasan Information Technology going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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.