Broker Revenue Forecasts For SL Green Realty Corp. (NYSE:SLG) Are Surging Higher

·3-min read

Shareholders in SL Green Realty Corp. (NYSE:SLG) 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 SL Green Realty will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from SL Green Realty's five analysts is for revenues of US$782m in 2022 which - if met - would reflect a modest 2.0% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$666m in 2022. It looks like there's been a clear increase in optimism around SL Green Realty, given the solid increase in revenue forecasts.

Check out our latest analysis for SL Green Realty


There was no particular change to the consensus price target of US$83.17, with SL Green Realty's latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic SL Green Realty analyst has a price target of US$105 per share, while the most pessimistic values it at US$65.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await SL Green Realty shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SL Green Realty's past performance and to peers in the same industry. For example, we noticed that SL Green Realty's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.7% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 14% 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 7.7% per year. So although SL Green Realty's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for 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 SL Green Realty.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential risks with SL Green Realty, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.

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