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Shareholders in eXp World Holdings, Inc. (NASDAQ:EXPI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. eXp World Holdings has also found favour with investors, with the stock up a worthy 19% to US$52.46 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After this upgrade, eXp World Holdings' three analysts are now forecasting revenues of US$2.7b in 2021. This would be a substantial 51% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 85% to US$0.41. Before this latest update, the analysts had been forecasting revenues of US$2.3b and earnings per share (EPS) of US$0.36 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for eXp World Holdings
With these upgrades, we're not surprised to see that the analysts have lifted their price target 208% to US$81.75 per share. 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 eXp World Holdings, with the most bullish analyst valuing it at US$96.50 and the most bearish at US$26.50 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the eXp World Holdings' past performance and to peers in the same industry. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 51% growth on an annualised basis. That is in line with its 63% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So it's pretty clear that eXp World Holdings is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at eXp World Holdings.