Analysts Are Betting On TBO Tek Limited (NSE:TBOTEK) With A Big Upgrade This Week

Shareholders in TBO Tek Limited (NSE:TBOTEK) may be thrilled to learn that the analysts have 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. Investors have been pretty optimistic on TBO Tek too, with the stock up 16% to ₹1,578 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

After the upgrade, the eight analysts covering TBO Tek are now predicting revenues of ₹25b in 2026. If met, this would reflect a sizeable 35% improvement in sales compared to the last 12 months. Per-share earnings are expected to expand 11% to ₹24.31. Prior to this update, the analysts had been forecasting revenues of ₹21b and earnings per share (EPS) of ₹24.16 in 2026. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for TBO Tek

The consensus price target increased 12% to ₹1,769, with an improved revenue forecast carrying the promise of a more valuable business, in time.

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 TBO Tek's growth to accelerate, with the forecast 49% annualised growth to the end of 2026 ranking favourably alongside historical growth of 24% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 19% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TBO Tek 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than 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 TBO Tek.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple TBO Tek analysts - going out to 2028, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.