Stock Analysis

Analysts' Revenue Estimates For Gland Pharma Limited (NSE:GLAND) Are Surging Higher

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NSEI:GLAND
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Celebrations may be in order for Gland Pharma Limited (NSE:GLAND) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Gland Pharma's 13 analysts is for revenues of ₹56b in 2024, which would reflect a substantial 44% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹49b in 2024. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

Check out our latest analysis for Gland Pharma

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NSEI:GLAND Earnings and Revenue Growth May 20th 2023

Notably, the analysts have cut their price target 6.5% to ₹1,621, suggesting concerns around Gland Pharma's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Gland Pharma analyst has a price target of ₹3,120 per share, while the most pessimistic values it at ₹925. We would probably assign less value to the forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily on the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Gland Pharma's rate of growth is expected to accelerate meaningfully, with the forecast 44% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Gland Pharma is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Gland Pharma.

Hungry for more information? We have analyst estimates for Gland Pharma going out to 2026, and you can see them 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.

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

Find out whether Gland Pharma 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.