Broker Revenue Forecasts For Nesco Limited (NSE:NESCO) Are Surging Higher

Nesco Limited (NSE:NESCO) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

Following the upgrade, the consensus from single analyst covering Nesco is for revenues of ₹6.3b in 2024, implying a discernible 4.6% decline in sales compared to the last 12 months. Per-share earnings are expected to step up 11% to ₹49.30. Before this latest update, the analyst had been forecasting revenues of ₹5.7b and earnings per share (EPS) of ₹45.20 in 2024. The forecasts seem more optimistic now, with a solid increase in revenue and a small lift in earnings per share estimates.

Check out our latest analysis for Nesco

Despite these upgrades, the analyst has not made any major changes to their price target of ₹787, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 4.6% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 14% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 19% annually for the foreseeable future. It's pretty clear that Nesco's revenues are expected to perform substantially worse 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 this year. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. 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 Nesco.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Nesco going out as far as 2025, 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.

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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.