This Analyst Just Wrote A Brand New Outlook For BLS International Services Limited's (NSE:BLS) Business

BLS International Services Limited (NSE:BLS) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from BLS International Services' lone analyst is for revenues of ₹13b in 2023 which - if met - would reflect a sizeable 38% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 26% to ₹7.50. Prior to this update, the analyst had been forecasting revenues of ₹9.8b and earnings per share (EPS) of ₹5.75 in 2023. 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.

View our latest analysis for BLS International Services

With these upgrades, we're not surprised to see that the analyst has lifted their price target 34% to ₹247 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BLS International Services' past performance and to peers in the same industry. One thing stands out from these estimates, which is that BLS International Services is forecast to grow faster in the future than it has in the past, with revenues expected to display 38% annualised growth until the end of 2023. If achieved, this would be a much better result than the 2.1% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 10% per year. So it looks like BLS International Services is expected to grow faster than its competitors, at least for a while.

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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, BLS International Services could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for BLS International Services 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.