Upgrade: Analysts Just Made A Captivating Increase To Their WELL Health Technologies Corp. (TSE:WELL) Forecasts

Celebrations may be in order for WELL Health Technologies Corp. (TSE:WELL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

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After the upgrade, the 13 analysts covering WELL Health Technologies are now predicting revenues of CA$1.4b in 2025. If met, this would reflect a huge 49% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to decrease 7.2% to CA$0.12 in the same period. Previously, the analysts had been modelling revenues of CA$1.2b and earnings per share (EPS) of CA$0.069 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for WELL Health Technologies

As a result, it might be a surprise to see that the analysts have cut their price target 6.3% to CA$7.86, which could suggest the forecast improvement in performance is not expected to last.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of WELL Health Technologies'historical trends, as the 49% annualised revenue growth to the end of 2025 is roughly in line with the 49% annual revenue growth 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 revenues grow 12% per year. So it's pretty clear that WELL Health Technologies 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. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, WELL Health Technologies could be one for the watch list.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple WELL Health Technologies analysts - going out to 2027, and you can see them free on our platform here.

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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.