Broker Revenue Forecasts For Healthcare Realty Trust Incorporated (NYSE:HR) Are Surging Higher

Healthcare Realty Trust Incorporated (NYSE:HR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Healthcare Realty Trust will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Healthcare Realty Trust's three analysts is for revenues of US$914m in 2022 which - if met - would reflect a major 63% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 162% to US$0.45. Before this latest update, the analysts had been forecasting revenues of US$802m and earnings per share (EPS) of US$0.41 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Healthcare Realty Trust

Despite these upgrades, the analysts have not made any major changes to their price target of US$30.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. There are some variant perceptions on Healthcare Realty Trust, with the most bullish analyst valuing it at US$33.00 and the most bearish at US$27.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Healthcare Realty Trust's rate of growth is expected to accelerate meaningfully, with the forecast 167% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 5.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Healthcare Realty 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 upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 Healthcare Realty Trust.

Analysts are definitely bullish on Healthcare Realty Trust, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other risks we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.