Broker Revenue Forecasts For Charter Hall Group (ASX:CHC) Are Surging Higher
Charter Hall Group (ASX:CHC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the consensus from nine analysts covering Charter Hall Group is for revenues of AU$800m in 2022, implying a painful 21% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing AU$652m of revenue in 2022. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.
Check out our latest analysis for Charter Hall Group
The consensus price target rose 9.8% to AU$22.21, with the analysts clearly more optimistic about Charter Hall Group's prospects following this update. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Charter Hall Group analyst has a price target of AU$25.58 per share, while the most pessimistic values it at AU$14.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 21% by the end of 2022. This indicates a significant reduction from annual growth of 19% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 4.4% annually for the foreseeable future. So it's pretty clear that Charter Hall Group's revenues are expected to shrink faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Charter Hall Group this year. They're also forecasting for revenues to shrink at a quicker rate than companies in 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Charter Hall Group.
Want more information? We have analyst estimates for Charter Hall Group going out to 2024, and you can see them 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
