LuxUrban Hotels Inc. (NASDAQ:LUXH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that LuxUrban Hotels will make substantially more sales than they'd previously expected.
After this upgrade, LuxUrban Hotels' three analysts are now forecasting revenues of US$265m in 2024. This would be a major 169% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$226m in 2024. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.
View our latest analysis for LuxUrban Hotels
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. It's clear from the latest estimates that LuxUrban Hotels' rate of growth is expected to accelerate meaningfully, with the forecast 120% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 70% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that LuxUrban Hotels is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at LuxUrban Hotels.
Analysts are clearly in love with LuxUrban Hotels at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .
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.
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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.