Neinor Homes, S.A. (BME:HOME) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After the upgrade, the four analysts covering Neinor Homes are now predicting revenues of €699m in 2021. If met, this would reflect a huge 22% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €632m of revenue in 2021. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.
View our latest analysis for Neinor Homes
We’d point out that there was no major changes to their price target of €11.68, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. The most optimistic Neinor Homes analyst has a price target of €13.80 per share, while the most pessimistic values it at €6.80. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Neinor Homes’ past performance and to peers in the same industry. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.5% annually. So although Neinor Homes is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Neinor Homes this year. They’re also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year’s forecasts, it might be time to take another look at Neinor Homes.
Want more information? At least one of Neinor Homes’ four analysts has provided estimates out to 2023, 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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