Need To Know: One Analyst Is Much More Bullish On Adani Enterprises Limited (NSE:ADANIENT) Revenues

Shareholders in Adani Enterprises Limited (NSE:ADANIENT) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the consensus from Adani Enterprises' lone analyst is for revenues of ₹684b in 2023, which would reflect a concerning 30% decline in sales compared to the last year of performance. Before the latest update, the analyst was foreseeing ₹621b of revenue in 2023. It looks like there's been a clear increase in optimism around Adani Enterprises, given the substantial gain in revenue forecasts.

Our analysis indicates that ADANIENT is potentially overvalued!

The consensus price target rose 18% to ₹2,800, with the analyst clearly more optimistic about Adani Enterprises' prospects following this update.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Adani Enterprises' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 38% by the end of 2023. This indicates a significant reduction from annual growth of 14% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 0.06% per year. So it's pretty clear that Adani Enterprises' revenues are expected to shrink faster than the wider industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Adani Enterprises this year. The analyst also expects revenues to shrink faster than the wider market. There was also a nice increase in the price target, with the analyst apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Adani Enterprises.

The covering analyst is definitely bullish on Adani Enterprises, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

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 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.