Growthpoint Properties Australia (ASX:GOZ) 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.
After the upgrade, the consensus from Growthpoint Properties Australia's five analysts is for revenues of AU$267m in 2021, which would reflect a perceptible 7.1% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of AU$266m in 2021. From what we can see, it looks like Growthpoint Properties Australia is performing in line with analyst expectations. The the analysts we track have all updated their numbers, and there were no major changes to their forecasts for this year.
We'd point out that there was no major changes to their price target of AU$3.55, suggesting the latest estimates were not enough to shift their view on the value of the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Growthpoint Properties Australia, with the most bullish analyst valuing it at AU$3.81 and the most bearish at AU$3.30 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 7.1%, a significant reduction from annual growth of 6.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 4.7% annually for the foreseeable future. The forecasts do look bearish for Growthpoint Properties Australia, since they're expecting it to shrink faster than the industry.
The Bottom Line
The clear take away from these updates is that analysts made no change to their revenue estimates for this year, with the business apparently performing in line with their models. The analysts also expect revenues to shrink faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Growthpoint Properties Australia.
Analysts are definitely bullish on Growthpoint Properties Australia, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 3 other warning signs we've identified .
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.
This article by Simply Wall St is general in nature. 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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