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Colliers International Group Inc. (TSE:CIGI) Analysts Are Pretty Bullish On The Stock After Recent Results

Investors in Colliers International Group Inc. (TSE:CIGI) had a good week, as its shares rose 4.8% to close at CA$164 following the release of its yearly results. It looks like the results were a bit of a negative overall. While revenues of US$4.3b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.8% to hit US$1.41 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Colliers International Group

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from Colliers International Group's seven analysts is for revenues of US$4.59b in 2024. This reflects a modest 5.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 66% to US$2.28. Before this earnings report, the analysts had been forecasting revenues of US$4.53b and earnings per share (EPS) of US$2.72 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 22% to CA$179, suggesting the revised estimates are not indicative of a weaker long-term future for 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. Currently, the most bullish analyst values Colliers International Group at CA$202 per share, while the most bearish prices it at CA$156. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Colliers International Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.8% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% annually. Factoring in the forecast slowdown in growth, it looks like Colliers International Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Colliers International Group analysts - going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - Colliers International Group has 3 warning signs (and 1 which can't be ignored) we think you should know about.

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.

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