Analysts Are Betting On Aegis Logistics Limited (NSE:AEGISCHEM) With A Big Upgrade This Week

Celebrations may be in order for Aegis Logistics Limited (NSE:AEGISCHEM) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Aegis Logistics will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 7.9% over the past week, closing at ₹375. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the current consensus from Aegis Logistics' three analysts is for revenues of ₹80b in 2022 which - if met - would reflect a sizeable 108% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 85% to ₹11.98. Prior to this update, the analysts had been forecasting revenues of ₹64b and earnings per share (EPS) of ₹11.60 in 2022. The forecasts seem more optimistic now, with a considerable lift to revenue and a small increase to earnings per share estimates.

View our latest analysis for Aegis Logistics

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to ₹380 per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Aegis Logistics at ₹436 per share, while the most bearish prices it at ₹343. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Aegis Logistics' growth to accelerate, with the forecast 108% annualised growth to the end of 2022 ranking favourably alongside historical growth of 13% 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 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Aegis Logistics 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. 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 Aegis Logistics.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Aegis Logistics analysts - going out to 2023, 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 that insiders are buying.

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