News Flash: Analysts Just Made A Sizeable Upgrade To Their Hektar Real Estate Investment Trust (KLSE:HEKTAR) Forecasts

Celebrations may be in order for Hektar Real Estate Investment Trust (KLSE:HEKTAR) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Hektar Real Estate Investment Trust's lone analyst is for revenues of RM110m in 2022 which - if met - would reflect a credible 5.8% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analyst forecasting RM0.057 in per-share earnings. Previously, the analyst had been modelling revenues of RM100m and earnings per share (EPS) of RM0.044 in 2022. 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.

See our latest analysis for Hektar Real Estate Investment Trust

It will come as no surprise to learn that the analyst has increased their price target for Hektar Real Estate Investment Trust 22% to RM0.73 on the back of these upgrades.

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 Hektar Real Estate Investment Trust is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.8% annualised growth until the end of 2022. If achieved, this would be a much better result than the 5.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.5% annually. So it looks like Hektar Real Estate Investment Trust is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue forecasts, although the latest estimates suggest that Hektar Real Estate Investment Trust will grow in line with the overall market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Hektar Real Estate Investment Trust.

The covering analyst is clearly in love with Hektar Real Estate Investment Trust 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. You can learn more, and discover the 3 other warning signs we've identified, for 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 that insiders are buying.

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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.