Stock Analysis

Broker Revenue Forecasts For Realogy Holdings Corp. (NYSE:RLGY) Are Surging Higher

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Shareholders in Realogy Holdings Corp. (NYSE:RLGY) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After this upgrade, Realogy Holdings' four analysts are now forecasting revenues of US$7.3b in 2021. This would be a notable 18% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$6.6b in 2021. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

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NYSE:RLGY Earnings and Revenue Growth February 27th 2021

There was no particular change to the consensus price target of US$18.86, with Realogy Holdings' latest outlook seemingly not enough to result in a change of valuation. 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 Realogy Holdings, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$15.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Realogy Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 18% annualised growth until the end of 2021. If achieved, this would be a much better result than the 0.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. So while Realogy Holdings' revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Realogy Holdings this year. Analysts also expect revenues to grow approximately in line with 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 Realogy Holdings.

Analysts are definitely bullish on Realogy Holdings, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

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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What are the risks and opportunities for Anywhere Real Estate?

Anywhere Real Estate Inc., through its subsidiaries, provides residential real estate services in the United States and internationally.

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Rewards

  • Trading at 84.8% below our estimate of its fair value

Risks

  • Earnings are forecast to decline by an average of 2.2% per year for the next 3 years

  • Debt is not well covered by operating cash flow

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