Analysts Have Been Trimming Their Yatra Online Limited (NSE:YATRA) Price Target After Its Latest Report

Yatra Online Limited (NSE:YATRA) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenue greatly exceeded expectations at ₹2.4b, some 114% ahead of analyst forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Yatra Online

After the latest results, the five analysts covering Yatra Online are now predicting revenues of ₹8.68b in 2025. If met, this would reflect a sizeable 53% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 197% to ₹3.40. In the lead-up to this report, the analysts had been modelling revenues of ₹5.39b and earnings per share (EPS) of ₹3.45 in 2025. There's clearly been a surge in bullishness around the company's revenue pipeline, even if there's no real change in earnings per share forecasts.

Even though revenue forecasts increased, the consensus price target 9.3% to ₹145, perhaps suggesting thatthe analysts have become more pessimistic about the lack of earnings growth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Yatra Online, with the most bullish analyst valuing it at ₹160 and the most bearish at ₹120 per share. This is a very narrow spread of estimates, implying either that Yatra Online is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Yatra Online's past performance and to peers in the same industry. It's clear from the latest estimates that Yatra Online's rate of growth is expected to accelerate meaningfully, with the forecast 136% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 37% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Yatra Online 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Yatra Online's future valuation.

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. We have estimates - from multiple Yatra Online analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Yatra Online that you need to be mindful of.

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.