Analysts Are Betting On Vonovia SE (ETR:VNA) With A Big Upgrade This Week
Celebrations may be in order for Vonovia SE (ETR:VNA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the latest upgrade, the current consensus, from the nine analysts covering Vonovia, is for revenues of €4.0b in 2026, which would reflect a stressful 33% reduction in Vonovia's sales over the past 12 months. Statutory earnings per share are supposed to plunge 42% to €2.62 in the same period. Previously, the analysts had been modelling revenues of €3.5b and earnings per share (EPS) of €2.63 in 2026. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.
View our latest analysis for Vonovia
It may not be a surprise to see that the analysts have reconfirmed their price target of €30.47, implying that the uplift in sales is not expected to greatly contribute to Vonovia's valuation in the near term.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 55% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 1.9% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 3.1% per year. The forecasts do look bearish for Vonovia, since they're expecting it to shrink faster than the industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Notably, analysts also upgraded their revenue estimates, with sales performing well although Vonovia's revenue growth is expected to trail that of 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 Vonovia.
Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Vonovia that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology 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 with high insider ownership.
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