Analyst Forecasts Just Became More Bearish On Nazara Technologies Limited (NSE:NAZARA)

Today is shaping up negative for Nazara Technologies Limited (NSE:NAZARA) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the latest consensus from Nazara Technologies' eleven analysts is for revenues of ₹13b in 2025, which would reflect a meaningful 15% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹15b in 2025. It looks like forecasts have become a fair bit less optimistic on Nazara Technologies, given the measurable cut to revenue estimates.

Check out our latest analysis for Nazara Technologies

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nazara Technologies' past performance and to peers in the same industry. We would highlight that Nazara Technologies' revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2025 being well below the historical 32% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10.0% per year. Even after the forecast slowdown in growth, it seems obvious that Nazara Technologies is also expected to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Nazara Technologies this year. They're also forecasting more rapid revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Nazara Technologies going forwards.

Need some more information? We have estimates for Nazara Technologies from its eleven analysts out until 2027, and you can see them 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.