Analysts' Revenue Estimates For The Real Brokerage Inc. (NASDAQ:REAX) Are Surging Higher

Shareholders in The Real Brokerage Inc. (NASDAQ:REAX) 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 Real Brokerage will make substantially more sales than they'd previously expected. Real Brokerage has also found favour with investors, with the stock up a worthy 13% to US$1.80 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for Real Brokerage from its two analysts is for revenues of US$631m in 2023 which, if met, would be a sizeable 26% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$526m of revenue in 2023. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

See our latest analysis for Real Brokerage

Additionally, the consensus price target for Real Brokerage increased 10% to US$2.75, showing a clear increase in optimism from the analysts involved.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Real Brokerage's revenue growth is expected to slow, with the forecast 59% annualised growth rate until the end of 2023 being well below the historical 95% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% annually. So it's pretty clear that, while Real Brokerage's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Real Brokerage.

Of course, there's always more to the story. We have analyst estimates for Real Brokerage going out to 2025, and you can see them 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.