News Flash: Analysts Just Made A Captivating Upgrade To Their Cohort plc (LON:CHRT) Forecasts

Celebrations may be in order for Cohort plc (LON:CHRT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Cohort will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Cohort's three analysts is for revenues of UK£220m in 2025 which - if met - would reflect a solid 8.6% increase on its sales over the past 12 months. Statutory earnings per share are forecast to be UK£0.38, approximately in line with the last 12 months. Prior to this update, the analysts had been forecasting revenues of UK£200m and earnings per share (EPS) of UK£0.36 in 2025. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and earnings per share forecasts for this year.

Check out our latest analysis for Cohort

It will come as no surprise to learn that the analysts have increased their price target for Cohort 24% to UK£9.80 on the back of these upgrades.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 8.6% growth on an annualised basis. That is in line with its 10.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 8.6% per year. So although Cohort is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Cohort.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cohort analysts - going out to 2027, and you can see them free 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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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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