Earnings Update: Here's Why Analysts Just Lifted Their Coforge Limited (NSE:COFORGE) Price Target To ₹6,390

Shareholders might have noticed that Coforge Limited (NSE:COFORGE) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.9% to ₹6,369 in the past week. It looks like the results were a bit of a negative overall. While revenues of ₹23b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.9% to hit ₹38.06 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Coforge

Taking into account the latest results, the current consensus from Coforge's 27 analysts is for revenues of ₹106.1b in 2025. This would reflect a solid 18% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 69% to ₹192. In the lead-up to this report, the analysts had been modelling revenues of ₹106.3b and earnings per share (EPS) of ₹193 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 5.3% to ₹6,390despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Coforge's earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Coforge at ₹7,670 per share, while the most bearish prices it at ₹3,885. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 would highlight that Coforge's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.5% per year. So it's pretty clear that, while Coforge's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Coforge going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Coforge that you need to take into consideration.

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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.