L&T Technology Services Limited (NSE:LTTS) Released Earnings Last Week And Analysts Lifted Their Price Target To ₹4,814

Last week saw the newest quarterly earnings release from L&T Technology Services Limited (NSE:LTTS), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of ₹24b and statutory earnings per share of ₹31.72 both in line with analyst estimates, showing that L&T Technology Services is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for L&T Technology Services

Following the latest results, L&T Technology Services' 26 analysts are now forecasting revenues of ₹109.4b in 2025. This would be a substantial 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 20% to ₹143. Before this earnings report, the analysts had been forecasting revenues of ₹108.7b and earnings per share (EPS) of ₹143 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.6% to ₹4,814. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic L&T Technology Services analyst has a price target of ₹6,260 per share, while the most pessimistic values it at ₹3,250. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting L&T Technology Services' growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect L&T Technology Services to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for L&T Technology Services going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with L&T Technology Services .

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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.