Analyst Forecasts Just Became More Bearish On HIAG Immobilien Holding AG (VTX:HIAG)

The analysts covering HIAG Immobilien Holding AG (VTX:HIAG) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from HIAG Immobilien Holding's three analysts is for revenues of CHF89m in 2020, which would reflect a huge 39% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CHF105m in 2020. It looks like forecasts have become a fair bit less optimistic on HIAG Immobilien Holding, given the measurable cut to revenue estimates.

Check out our latest analysis for HIAG Immobilien Holding

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting HIAG Immobilien Holding's growth to accelerate, with the forecast 93% annualised growth to the end of 2020 ranking favourably alongside historical growth of 4.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 6.0% annually. It seems obvious that as part of the brighter growth outlook, HIAG Immobilien Holding is expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. The analysts also expect revenues to perform better than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on HIAG Immobilien Holding after today.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with HIAG Immobilien Holding's business, like dilutive stock issuance over the past year. For more information, you can click here to discover this and the 1 other concern we've identified.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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