New Forecasts: Here's What Analysts Think The Future Holds For UBM Development AG (VIE:UBS)

UBM Development AG (VIE:UBS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that UBM Development will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for UBM Development from its three analysts is for revenues of €171m in 2024 which, if met, would be a substantial 95% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 82% to €1.44 per share. Yet before this consensus update, the analysts had been forecasting revenues of €141m and losses of €1.44 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, withthe analysts noticeably increasing their revenue forecasts while also expecting losses per share to hold steady.

See our latest analysis for UBM Development

There were no major changes to the €27.73 consensus price target despite the higher revenue estimates, with the analysts seeming to believe that ongoing losses have a larger impact on the valuation than growing sales.

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. One thing stands out from these estimates, which is that UBM Development is forecast to grow faster in the future than it has in the past, with revenues expected to display 95% annualised growth until the end of 2024. If achieved, this would be a much better result than the 20% annual decline over the past five years. What's also interesting is that our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue decline 1.8% annually for the foreseeable future. So although UBM Development is expected to return to growth, it's also expected to grow revenues during a time when the wider industry is estimated to see revenue decline.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around UBM Development's prospects. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at UBM Development.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple UBM Development analysts - going out to 2026, 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.

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