Celebrations may be in order for Warehouse REIT plc (LON:WHR) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Warehouse REIT from its one analyst is for revenues of UK£37m in 2021 which, if met, would be a major 22% increase on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of UK£30m in 2021. The consensus has definitely become more optimistic, showing a very substantial lift in revenue forecasts.

Check out our latest analysis for Warehouse REIT

Additionally, the consensus price target for Warehouse REIT increased 6.8% to €1.44, showing a clear increase in optimism from the analyst involved.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Warehouse REIT's revenue growth is expected to slow, with forecast 22% increase next year well below the historical 37% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.5% next year. So it's pretty clear that, while Warehouse REIT's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. The analyst also expects revenues to grow faster than the wider market. There was also a nice increase in the price target, with the analyst 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 Warehouse REIT.

The covering analyst is definitely bullish on Warehouse REIT, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. You can learn more, and discover the 4 other concerns we've identified, for 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 that insiders are buying.

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