Yahoo Finance What Do Investors Need To Know About Target Healthcare REIT Limited’s (LON:THRL) Future?
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Based on Target Healthcare REIT Limited’s (LON:THRL) earnings update in June 2018, analyst forecasts appear to be bearish, with earnings expected to decline by -7.9% in the upcoming year compared with the past 5-year average growth rate of 45%. Presently, with latest-twelve-month earnings at UK£28m, we should see this fall to UK£25m by 2020. Below is a brief commentary on the longer term outlook the market has for Target Healthcare REIT. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for Target Healthcare REIT
How will Target Healthcare REIT perform in the near future?
Longer term expectations from the 2 analysts covering THRL’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
From the current net income level of UK£28m and the final forecast of UK£43m by 2022, the annual rate of growth for THRL’s earnings is 18%. EPS reaches £0.11 in the final year of forecast compared to the current £0.098 EPS today. Margins are currently sitting at 97%, approximately the same as previous years. With analysts forecasting revenue growth of 0.57497 and THRL’s net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Target Healthcare REIT, there are three important factors you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is Target Healthcare REIT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Target Healthcare REIT is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Target Healthcare REIT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
