Yahoo Finance New Forecasts: Here's What Analysts Think The Future Holds For Columbia Property Trust, Inc. (NYSE:CXP)
Columbia Property Trust, Inc. (NYSE:CXP) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Columbia Property Trust will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Columbia Property Trust too, with the stock up 40% to US$12.90 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the current consensus from Columbia Property Trust's three analysts is for revenues of US$327m in 2020 which - if met - would reflect a solid 13% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$292m in 2020. It looks like there's been a clear increase in optimism around Columbia Property Trust, given the decent improvement in revenue forecasts.
Check out our latest analysis for Columbia Property Trust
Notably, the analysts have cut their price target 7.7% to US$22.00, suggesting concerns around Columbia Property Trust's valuation. 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. There are some variant perceptions on Columbia Property Trust, with the most bullish analyst valuing it at US$26.00 and the most bearish at US$17.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Columbia Property Trust's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 13%, well above its historical decline of 18% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.8% per year. Not only are Columbia Property Trust's revenues expected to improve, it seems that the analysts are also expecting it to grow faster 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 forecasting more rapid revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Columbia Property Trust.
Unanswered questions? At least one of Columbia Property Trust's three analysts has provided estimates out to 2024, which can be seen for 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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