Need To Know: Analysts Are Much More Bullish On Neinor Homes, S.A. (BME:HOME) Revenues

Neinor Homes, S.A. (BME:HOME) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. 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 Neinor Homes from its four analysts is for revenues of €741m in 2021 which, if met, would be a solid 19% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €639m of revenue in 2021. It looks like there's been a clear increase in optimism around Neinor Homes, given the nice increase in revenue forecasts.

See our latest analysis for Neinor Homes

There was no particular change to the consensus price target of €12.05, with Neinor Homes' latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Neinor Homes analyst has a price target of €13.96 per share, while the most pessimistic values it at €8.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Neinor Homes shareholders.

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 Neinor Homes' growth to accelerate, with the forecast 26% annualised growth to the end of 2021 ranking favourably alongside historical growth of 21% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Neinor Homes to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for 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.

Analysts are clearly in love with Neinor Homes at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a weak balance sheet. For more information, you can click through to our platform to learn more about this and the 1 other warning sign we've identified .

We also provide an overview of the Neinor Homes Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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