New Forecasts: Here's What Analysts Think The Future Holds For BSE Limited (NSE:BSE)

Shareholders in BSE Limited (NSE:BSE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investors have been pretty optimistic on BSE too, with the stock up 25% to ₹2,322 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the four analysts covering BSE are now predicting revenues of ₹13b in 2024. If met, this would reflect a major 31% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to dip 7.7% to ₹42.20 in the same period. Previously, the analysts had been modelling revenues of ₹11b and earnings per share (EPS) of ₹28.65 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for BSE

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.6% to ₹1,899 per share.

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. It's clear from the latest estimates that BSE's rate of growth is expected to accelerate meaningfully, with the forecast 73% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 8.5% p.a. 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 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect BSE to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at BSE.

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 BSE going out to 2026, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.