Need To Know: Analysts Are Much More Bullish On Braemar Hotels & Resorts, Inc. (NYSE:BHR) Revenues
Shareholders in Braemar Hotels & Resorts, Inc. (NYSE:BHR) 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 analysts now much more optimistic on its sales pipeline.
After the upgrade, the four analysts covering Braemar Hotels & Resorts are now predicting revenues of US$403m in 2021. If met, this would reflect a huge 48% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$355m in 2021. It looks like there's been a clear increase in optimism around Braemar Hotels & Resorts, given the substantial gain in revenue forecasts.
Check out our latest analysis for Braemar Hotels & Resorts
We'd point out that there was no major changes to their price target of US$11.00, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. The most optimistic Braemar Hotels & Resorts analyst has a price target of US$14.00 per share, while the most pessimistic values it at US$7.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
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. For example, we noticed that Braemar Hotels & Resorts' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 118% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 6.6% a year 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 6.5% annually. So it looks like Braemar Hotels & Resorts is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Braemar Hotels & Resorts this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Braemar Hotels & Resorts.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning signs with Braemar Hotels & Resorts, including major dilution from new stock issuance in the past year. 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.
This article by Simply Wall St is general in nature. 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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