Analysts' Revenue Estimates For Industrial Logistics Properties Trust (NASDAQ:ILPT) Are Surging Higher

Celebrations may be in order for Industrial Logistics Properties Trust (NASDAQ:ILPT) 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 Industrial Logistics Properties Trust will make substantially more sales than they'd previously expected.

After this upgrade, Industrial Logistics Properties Trust's six analysts are now forecasting revenues of US$390m in 2022. This would be a sizeable 35% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$347m in 2022. It looks like there's been a clear increase in optimism around Industrial Logistics Properties Trust, given the nice gain to revenue forecasts.

See our latest analysis for Industrial Logistics Properties Trust

The consensus price target fell 19% to US$15.50, with the analysts clearly less optimistic about Industrial Logistics Properties Trust's valuation following this update. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Industrial Logistics Properties Trust analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$12.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Industrial Logistics Properties Trust is an easy business to forecast or the underlying assumptions are obvious.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Industrial Logistics Properties Trust's growth to accelerate, with the forecast 81% annualised growth to the end of 2022 ranking favourably alongside historical growth of 12% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Industrial Logistics Properties Trust is expected to grow much faster than its industry.

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. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Industrial Logistics Properties Trust.

Hungry for more information? At least one of Industrial Logistics Properties Trust's six 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.