News Flash: One Analyst Just Made A Captivating Upgrade To Their MPS Limited (NSE:MPSLTD) Forecasts

Shareholders in MPS Limited (NSE:MPSLTD) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The revenue forecast for next year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

After this upgrade, MPS' lone analyst is now forecasting revenues of ₹7.7b in 2025. This would be a major 48% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 24% to ₹89.30. Before this latest update, the analyst had been forecasting revenues of ₹5.9b and earnings per share (EPS) of ₹82.40 in 2025. The most recent forecasts are noticeably more optimistic, with a chunky increase in revenue estimates and a lift to earnings per share as well.

See our latest analysis for MPS

It will come as no surprise to learn that the analyst has increased their price target for MPS 28% to ₹2,120 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MPS' past performance and to peers in the same industry. It's clear from the latest estimates that MPS' rate of growth is expected to accelerate meaningfully, with the forecast 37% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.4% 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 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect MPS to grow faster than the wider industry.

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. They also upgraded their revenue estimates for next year, and sales are expected to grow faster 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. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at MPS.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for 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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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.