Analysts Just Made A Substantial Upgrade To Their HIAG Immobilien Holding AG (VTX:HIAG) Forecasts

HIAG Immobilien Holding AG (VTX:HIAG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

After the upgrade, the three analysts covering HIAG Immobilien Holding are now predicting revenues of CHF105m in 2020. If met, this would reflect a major 63% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting CHF5.11 in per-share earnings. Before this latest update, the analysts had been forecasting revenues of CHF90m and earnings per share (EPS) of CHF4.16 in 2020. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for HIAG Immobilien Holding

Despite these upgrades, the analysts have not made any major changes to their price target of CHF112, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. There are some variant perceptions on HIAG Immobilien Holding, with the most bullish analyst valuing it at CHF113 and the most bearish at CHF111 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting HIAG Immobilien Holding's growth to accelerate, with the forecast 63% growth 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 4.2% next year. So it's clear with the acceleration in growth, HIAG Immobilien Holding is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at HIAG Immobilien Holding.

Analysts are clearly in love with HIAG Immobilien Holding at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 1 other flag 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.

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