Bullish: Analysts Just Made A Meaningful Upgrade To Their Polar Capital Holdings Plc (LON:POLR) Forecasts

Shareholders in Polar Capital Holdings Plc (LON:POLR) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. 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. Investor sentiment seems to be improving too, with the share price up 5.8% to UK£5.62 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

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Following the latest upgrade, Polar Capital Holdings' seven analysts currently expect revenues in 2026 to be UK£226m, approximately in line with the last 12 months. Statutory earnings per share are presumed to leap 49% to UK£0.55. Prior to this update, the analysts had been forecasting revenues of UK£197m and earnings per share (EPS) of UK£0.43 in 2026. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Polar Capital Holdings

It will come as no surprise to learn that the analysts have increased their price target for Polar Capital Holdings 12% to UK£6.19 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Polar Capital Holdings' past performance and to peers in the same industry. We would highlight that Polar Capital Holdings' revenue growth is expected to slow, with the forecast 0.1% annualised growth rate until the end of 2026 being well below the historical 3.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Polar Capital Holdings is also expected to grow slower than other industry participants.

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, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Polar Capital Holdings.

Better yet, our automated discounted cash flow calculation (DCF) suggests Polar Capital Holdings could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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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.