The Neuland Laboratories Limited (NSE:NEULANDLAB) Analyst Just Boosted Their Forecasts By A Meaningful Amount

Celebrations may be in order for Neuland Laboratories Limited (NSE:NEULANDLAB) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 39% to ₹5,371 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the latest consensus from Neuland Laboratories' sole analyst is for revenues of ₹16b in 2024, which would reflect a satisfactory 7.4% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to accumulate 2.7% to ₹213. Before this latest update, the analyst had been forecasting revenues of ₹14b and earnings per share (EPS) of ₹149 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Neuland Laboratories

With these upgrades, we're not surprised to see that the analyst has lifted their price target 55% to ₹5,875 per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Neuland Laboratories'historical trends, as the 15% annualised revenue growth to the end of 2024 is roughly in line with the 16% annual revenue growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Neuland Laboratories is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Neuland Laboratories.

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 2025, which can be seen for 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.

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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.