These Analysts Think Easy Trip Planners Limited's (NSE:EASEMYTRIP) Sales Are Under Threat

Today is shaping up negative for Easy Trip Planners Limited (NSE:EASEMYTRIP) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Easy Trip Planners' three analysts are now forecasting revenues of ₹4.9b in 2023. This would be a major 69% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 38% to ₹7.87. Previously, the analysts had been modelling revenues of ₹5.5b and earnings per share (EPS) of ₹8.00 in 2023. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a substantial drop in revenues and reconfirming their earnings per share estimates.

View our latest analysis for Easy Trip Planners

The average price target was steady at ₹428 even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Easy Trip Planners at ₹491 per share, while the most bearish prices it at ₹395. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Easy Trip Planners' revenue growth is expected to slow, with the forecast 69% annualised growth rate until the end of 2023 being well below the historical 140% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 20% annually. Even after the forecast slowdown in growth, it seems obvious that Easy Trip Planners is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Easy Trip Planners going forwards.

Still, 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 Easy Trip Planners going out to 2025, 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 downgrading 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.