News Flash: Analysts Just Made A Captivating Upgrade To Their Brixmor Property Group Inc. (NYSE:BRX) Forecasts

Brixmor Property Group Inc. (NYSE:BRX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for Brixmor Property Group from its seven analysts is for revenues of US$1.1b in 2021 which, if met, would be a credible 4.4% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.0b of revenue in 2021. It looks like there's been a clear increase in optimism around Brixmor Property Group, given the substantial gain in revenue forecasts.

Check out our latest analysis for Brixmor Property Group

We'd point out that there was no major changes to their price target of US$23.73, suggesting the latest estimates were not enough to shift their view on the value of the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Brixmor Property Group, with the most bullish analyst valuing it at US$27.00 and the most bearish at US$21.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Brixmor Property Group is an easy business to forecast or the underlying assumptions are obvious.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Brixmor Property Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.0% annualised growth until the end of 2021. If achieved, this would be a much better result than the 4.2% 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 6.4% per year. So it looks like Brixmor Property Group is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow faster 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 Brixmor Property Group.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Brixmor Property Group that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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. 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.
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