News Flash: Analysts Just Made An Incredible Upgrade To Their Guangzhou R&F Properties Co., Ltd. (HKG:2777) Forecasts

Guangzhou R&F Properties Co., Ltd. (HKG:2777) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the consensus from Guangzhou R&F Properties' two analysts is for revenues of CN¥27b in 2024, which would reflect a sizeable 25% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of CN¥17b in 2024. It looks like there's been a clear increase in optimism around Guangzhou R&F Properties, given the great increase in revenue forecasts.

Check out our latest analysis for Guangzhou R&F Properties

The consensus price target fell 30% to CN¥0.65, with the analysts clearly less optimistic about Guangzhou R&F Properties' valuation following this update. 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 Guangzhou R&F Properties analyst has a price target of CN¥0.74 per share, while the most pessimistic values it at CN¥0.56. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Guangzhou R&F Properties' past performance and to peers in the same industry. Over the past five years, revenues have declined around 17% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 25% decline in revenue until the end of 2024. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.1% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Guangzhou R&F Properties to suffer worse than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Guangzhou R&F Properties this year. They also expect company revenue to perform worse than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Guangzhou R&F Properties' future valuation. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Guangzhou R&F Properties.

Want more information? We have analyst estimates for Guangzhou R&F Properties going out to 2026, and you can see them free on our platform here.

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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.