New Forecasts: Here's What Analysts Think The Future Holds For Starwood Property Trust, Inc. (NYSE:STWD)

Starwood Property Trust, Inc. (NYSE:STWD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. The stock price has risen 4.2% to US$18.31 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

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Following the upgrade, the most recent consensus for Starwood Property Trust from its six analysts is for revenues of US$2.1b in 2026 which, if met, would be a substantial 333% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.9b of revenue in 2026. It looks like there's been a clear increase in optimism around Starwood Property Trust, given the nice increase in revenue forecasts.

Check out our latest analysis for Starwood Property Trust

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. One thing stands out from these estimates, which is that Starwood Property Trust is forecast to grow faster in the future than it has in the past, with revenues expected to display 223% annualised growth until the end of 2026. If achieved, this would be a much better result than the 14% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 23% per year. So it looks like Starwood Property Trust 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 Starwood Property Trust next 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 Starwood Property Trust.

Analysts are definitely bullish on Starwood Property Trust, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including the risk of cutting its dividend. You can learn more, and discover the 1 other risk 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 with high insider ownership.

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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.