Shareholders in Hongkong Land Holdings Limited (SGX:H78) 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 Hongkong Land Holdings will make substantially more sales than they'd previously expected.

Following the latest upgrade, the twelve analysts covering Hongkong Land Holdings provided consensus estimates of US$1.9b revenue in 2024, which would reflect an uncomfortable 11% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$1.6b of revenue in 2024. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

There was no particular change to the consensus price target of US$3.46, with Hongkong Land Holdings' latest outlook seemingly not enough to result in a change of valuation.

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. One more thing stood out to us about these estimates, and it's the idea that Hongkong Land Holdings' decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 20% to the end of 2024. This tops off a historical decline of 1.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 0.3% per year. So while a broad number of companies are forecast to grow, unfortunately Hongkong Land Holdings is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Hongkong Land Holdings this year. They also expect company revenue to perform worse 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 Hongkong Land Holdings.

Looking to learn more? We have analyst estimates for Hongkong Land Holdings going out to 2026, 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.