Yahoo Finance One Analyst's Revenue Estimates For The Howard Hughes Corporation (NYSE:HHC) Are Surging Higher
The Howard Hughes Corporation (NYSE:HHC) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that Howard Hughes will make substantially more sales than they'd previously expected.
After the upgrade, the consensus from Howard Hughes' sole analyst is for revenues of US$1.1b in 2023, which would reflect a painful 34% decline in sales compared to the last year of performance. Before the latest update, the analyst was foreseeing US$917m of revenue in 2023. It looks like there's been a clear increase in optimism around Howard Hughes, given the solid increase in revenue forecasts.
Check out our latest analysis for Howard Hughes
We'd point out that there was no major changes to their price target of US$104, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. Currently, the most bullish analyst values Howard Hughes at US$150 per share, while the most bearish prices it at US$85.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Howard Hughes' past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 34% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 6.8% 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 6.8% per year. It's pretty clear that Howard Hughes' 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 the analyst lifted their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Howard Hughes.
Of course, there's always more to the story. We have estimates for Howard Hughes until 2024 from one covering analyst, and you can see them 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
