Yahoo Finance Growth Investors: Industry Analysts Just Upgraded Their Armada Hoffler Properties, Inc. (NYSE:AHH) Revenue Forecasts By 50%
Shareholders in Armada Hoffler Properties, Inc. (NYSE:AHH) 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. Investor sentiment seems to be improving too, with the share price up 8.6% to US$13.51 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
After the upgrade, the consensus from Armada Hoffler Properties' three analysts is for revenues of US$334m in 2023, which would reflect a concerning 26% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of US$222m in 2023. It looks like there's been a clear increase in optimism around Armada Hoffler Properties, given the sizeable gain to revenue forecasts.
See our latest analysis for Armada Hoffler Properties
There was no particular change to the consensus price target of US$13.90, with Armada Hoffler Properties' latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Armada Hoffler Properties analyst has a price target of US$17.00 per share, while the most pessimistic values it at US$12.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Armada Hoffler Properties shareholders.
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 26% by the end of 2023. This indicates a significant reduction from annual growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.1% per year. It's pretty clear that Armada Hoffler Properties' revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also anticipating slower revenue growth than 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 Armada Hoffler Properties.
Still got questions? We have analyst estimates for Armada Hoffler Properties going out to 2025, and you can see them free on our platform here.
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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.
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