News Flash: Analysts Just Made A Meaningful Upgrade To Their BLS International Services Limited (NSE:BLS) Forecasts

Celebrations may be in order for BLS International Services Limited (NSE:BLS) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market seems to be pricing in some improvement in the business too, with the stock up 7.3% over the past week, closing at ₹360. Could this big upgrade push the stock even higher?

Following the upgrade, the latest consensus from BLS International Services' one analyst is for revenues of ₹15b in 2023, which would reflect a substantial 31% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 34% to ₹9.40. Prior to this update, the analyst had been forecasting revenues of ₹13b and earnings per share (EPS) of ₹7.50 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

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Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that BLS International Services' rate of growth is expected to accelerate meaningfully, with the forecast 71% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 0.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that BLS International Services is expected to grow much faster than its 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at BLS International Services.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2025, which can be seen for 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.

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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.