Industry Analysts Just Upgraded Their Frasers Property Limited (SGX:TQ5) Revenue Forecasts By 12%

Celebrations may be in order for Frasers Property Limited (SGX:TQ5) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Frasers Property's three analysts is for revenues of S$3.3b in 2021 which - if met - would reflect a meaningful 10% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of S$3.0b in 2021. It looks like there's been a clear increase in optimism around Frasers Property, given the nice increase in revenue forecasts.

Check out our latest analysis for Frasers Property

There was no particular change to the consensus price target of S$1.29, with Frasers Property's latest outlook seemingly not enough to result in a change of valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Frasers Property analyst has a price target of S$1.41 per share, while the most pessimistic values it at S$1.15. This is a very narrow spread of estimates, implying either that Frasers Property is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. For example, we noticed that Frasers Property's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 10% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 0.2% a year 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 6.5% annually. So it looks like Frasers Property is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Frasers Property 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 Frasers Property.

Analysts are definitely bullish on Frasers Property, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other risks 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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