Analysts' Revenue Estimates For Sunway Real Estate Investment Trust (KLSE:SUNREIT) Are Surging Higher

Shareholders in Sunway Real Estate Investment Trust (KLSE:SUNREIT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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 latest consensus from Sunway Real Estate Investment Trust's 13 analysts is for revenues of RM699m in 2021, which would reflect a huge 28% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 41% to RM0.09. Before this latest update, the analysts had been forecasting revenues of RM585m and earnings per share (EPS) of RM0.089 in 2021. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for Sunway Real Estate Investment Trust

It may not be a surprise to see that the analysts have reconfirmed their price target of RM1.59, implying that the uplift in sales is not expected to greatly contribute to Sunway Real Estate Investment Trust's valuation in the near term. 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. The most optimistic Sunway Real Estate Investment Trust analyst has a price target of RM1.90 per share, while the most pessimistic values it at RM1.45. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

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. It's clear from the latest estimates that Sunway Real Estate Investment Trust's rate of growth is expected to accelerate meaningfully, with the forecast 28% revenue growth noticeably faster than its historical growth of 4.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.4% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sunway Real Estate Investment Trust is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Sunway Real Estate Investment Trust.

Analysts are definitely bullish on Sunway Real Estate Investment Trust, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other warning signs 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 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. 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.
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