Analysts Are Betting On Mapletree Industrial Trust (SGX:ME8U) With A Big Upgrade This Week

Celebrations may be in order for Mapletree Industrial Trust (SGX:ME8U) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Mapletree Industrial Trust will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Mapletree Industrial Trust from its nine analysts is for revenues of S$570m in 2022 which, if met, would be a substantial 27% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 95% to S$0.14. Prior to this update, the analysts had been forecasting revenues of S$517m and earnings per share (EPS) of S$0.14 in 2022. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Mapletree Industrial Trust

Even though revenue forecasts increased, there was no change to the consensus price target of S$3.16, suggesting the analysts are focused on earnings as the driver of value creation. 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. There are some variant perceptions on Mapletree Industrial Trust, with the most bullish analyst valuing it at S$3.62 and the most bearish at S$2.75 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Mapletree Industrial Trust's growth to accelerate, with the forecast 27% annualised growth to the end of 2022 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Mapletree Industrial Trust is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Mapletree Industrial Trust.

Analysts are clearly in love with Mapletree Industrial Trust at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 3 other flags 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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