Metropolis Healthcare Limited (NSE:METROPOLIS) Just Reported And Analysts Have Been Lifting Their Price Targets

Metropolis Healthcare Limited (NSE:METROPOLIS) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Metropolis Healthcare reported in line with analyst predictions, delivering revenues of ₹3.1b and statutory earnings per share of ₹7.37, suggesting the business is executing well and in line with its plan. 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.

See our latest analysis for Metropolis Healthcare

Taking into account the latest results, the current consensus from Metropolis Healthcare's 16 analysts is for revenues of ₹13.6b in 2025. This would reflect a meaningful 9.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 31% to ₹35.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹13.5b and earnings per share (EPS) of ₹34.83 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 6.6% to ₹2,060despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Metropolis Healthcare's earnings by assigning a price premium. 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. The most optimistic Metropolis Healthcare analyst has a price target of ₹2,490 per share, while the most pessimistic values it at ₹1,691. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Metropolis Healthcare's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 17% annually. So it's clear that despite the acceleration in growth, Metropolis Healthcare is expected to grow meaningfully slower than the industry average.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Metropolis Healthcare's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Metropolis Healthcare going out to 2027, and you can see them free on our platform here.

You can also see whether Metropolis Healthcare is carrying too much debt, and whether its balance sheet is healthy, for free 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.