News Flash: Analysts Just Made A Captivating Upgrade To Their Lendlease Global Commercial REIT (SGX:JYEU) Forecasts

Shareholders in Lendlease Global Commercial REIT (SGX:JYEU) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Lendlease Global Commercial REIT will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Lendlease Global Commercial REIT's seven analysts is for revenues of S$93m in 2022, which would reflect a solid 11% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing S$83m of revenue in 2022. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

See our latest analysis for Lendlease Global Commercial REIT

We'd point out that there was no major changes to their price target of S$0.98, suggesting the latest estimates were not enough to shift their view on the value of the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Lendlease Global Commercial REIT at S$1.08 per share, while the most bearish prices it at S$0.82. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Lendlease Global Commercial REIT's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2022 being well below the historical 42% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% per year. So it's pretty clear that, while Lendlease Global Commercial REIT's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Lendlease Global Commercial REIT this year. They're also forecasting more rapid revenue growth 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 Lendlease Global Commercial REIT.

Want more information? At least one of Lendlease Global Commercial REIT's seven analysts has provided estimates out to 2024, which can be seen 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.