Here's What Analysts Are Forecasting For PropertyGuru Group Limited (NYSE:PGRU) After Its Second-Quarter Results
As you might know, PropertyGuru Group Limited (NYSE:PGRU) recently reported its second-quarter numbers. The result was fairly weak overall, with revenues of S$37m being 5.9% less than what the analysts had been modelling. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PropertyGuru Group after the latest results.
View our latest analysis for PropertyGuru Group
Taking into account the latest results, the most recent consensus for PropertyGuru Group from seven analysts is for revenues of S$161.6m in 2023. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Losses are forecast to narrow 8.2% to S$0.15 per share. Before this latest report, the consensus had been expecting revenues of S$162.9m and S$0.13 per share in losses. While this year's revenue estimates held steady, there was also a considerable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
As a result, there was no major change to the consensus price target of US$6.46, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on PropertyGuru Group, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$5.17 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.
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. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 22% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although PropertyGuru Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$6.46, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for PropertyGuru Group going out to 2025, and you can see them free on our platform here..
You still need to take note of risks, for example - PropertyGuru Group has 2 warning signs we think you should be aware of.
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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.
