Stock Analysis

News Flash: One Analyst Just Made An Incredible Upgrade To Their Lloyds Metals and Energy Limited (NSE:LLOYDSME) Forecasts

NSEI:LLOYDSME
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Celebrations may be in order for Lloyds Metals and Energy Limited (NSE:LLOYDSME) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst has sharply increased their revenue numbers, with a view that Lloyds Metals and Energy will make substantially more sales than they'd previously expected.

After the upgrade, the solo analyst covering Lloyds Metals and Energy is now predicting revenues of ₹88b in 2025. If met, this would reflect a huge 51% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 79% to ₹43.70. Before this latest update, the analyst had been forecasting revenues of ₹63b and earnings per share (EPS) of ₹41.20 in 2025. The most recent forecasts are noticeably more optimistic, with a very substantial lift in revenue estimates and a lift to earnings per share as well.

Check out our latest analysis for Lloyds Metals and Energy

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NSEI:LLOYDSME Earnings and Revenue Growth March 13th 2024

It will come as no surprise to learn that the analyst has increased their price target for Lloyds Metals and Energy 23% to ₹800 on the back of these upgrades.

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. We would highlight that Lloyds Metals and Energy's revenue growth is expected to slow, with the forecast 39% annualised growth rate until the end of 2025 being well below the historical 63% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.1% annually. So it's pretty clear that, while Lloyds Metals and Energy's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, the analyst 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 the analyst apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Lloyds Metals and Energy.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Lloyds Metals and Energy going out as far as 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.

Valuation is complex, but we're helping make it simple.

Find out whether Lloyds Metals and Energy is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.