Yahoo Finance News Flash: Analysts Just Made A Captivating Upgrade To Their Kennedy-Wilson Holdings, Inc. (NYSE:KW) Forecasts
Shareholders in Kennedy-Wilson Holdings, Inc. (NYSE:KW) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Kennedy-Wilson Holdings will make substantially more sales than they'd previously expected.
After this upgrade, Kennedy-Wilson Holdings' three analysts are now forecasting revenues of US$597m in 2021. This would be a substantial 26% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$483m of revenue in 2021. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.
View our latest analysis for Kennedy-Wilson Holdings
We'd point out that there was no major changes to their price target of US$22.50, suggesting the latest estimates were not enough to shift their view on the value of the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Kennedy-Wilson Holdings analyst has a price target of US$23.00 per share, while the most pessimistic values it at US$21.00. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.
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. One thing stands out from these estimates, which is that Kennedy-Wilson Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 37% annualised growth until the end of 2021. If achieved, this would be a much better result than the 5.9% annual decline 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 13% annually. Not only are Kennedy-Wilson Holdings' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Kennedy-Wilson Holdings 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 Kennedy-Wilson Holdings.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential warning signs with Kennedy-Wilson Holdings, including its declining profit margins. You can learn more, and discover the 3 other warning signs we've identified, for free on our platform here.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
