Analysts Have Been Trimming Their Entero Healthcare Solutions Limited (NSE:ENTERO) Price Target After Its Latest Report

It's been a sad week for Entero Healthcare Solutions Limited (NSE:ENTERO), who've watched their investment drop 14% to ₹1,231 in the week since the company reported its quarterly result. It was a credible result overall, with revenues of ₹14b and statutory earnings per share of ₹10.81 both in line with analyst estimates, showing that Entero Healthcare Solutions is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Entero Healthcare Solutions

Taking into account the latest results, the consensus forecast from Entero Healthcare Solutions' four analysts is for revenues of ₹65.9b in 2026. This reflects a major 38% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 77% to ₹36.74. In the lead-up to this report, the analysts had been modelling revenues of ₹67.1b and earnings per share (EPS) of ₹39.78 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The average price target fell 5.3% to ₹1,627, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 Entero Healthcare Solutions at ₹1,650 per share, while the most bearish prices it at ₹1,590. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Entero Healthcare Solutions' past performance and to peers in the same industry. The analysts are definitely expecting Entero Healthcare Solutions' growth to accelerate, with the forecast 29% annualised growth to the end of 2026 ranking favourably alongside historical growth of 21% 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 19% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Entero Healthcare Solutions is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Entero Healthcare Solutions. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Entero Healthcare Solutions going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.