Analysts Have Been Trimming Their Trent Limited (NSE:TRENT) Price Target After Its Latest Report

It's been a sad week for Trent Limited (NSE:TRENT), who've watched their investment drop 12% to ₹5,454 in the week since the company reported its quarterly result. Trent reported in line with analyst predictions, delivering revenues of ₹47b and statutory earnings per share of ₹41.82, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Trent

Following the latest results, Trent's twelve analysts are now forecasting revenues of ₹234.4b in 2026. This would be a huge 45% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 20% to ₹65.04. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹245.6b and earnings per share (EPS) of ₹71.39 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

It'll come as no surprise then, to learn that the analysts have cut their price target 6.2% to ₹6,446. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Trent, with the most bullish analyst valuing it at ₹8,160 and the most bearish at ₹3,619 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for 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. We can infer from the latest estimates that forecasts expect a continuation of Trent'shistorical trends, as the 34% annualised revenue growth to the end of 2026 is roughly in line with the 39% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 22% per year. So although Trent is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Trent. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Trent. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Trent analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Trent you should be aware of.

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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.