News Flash: Analysts Just Made A Notable Upgrade To Their Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) Forecasts

Celebrations may be in order for Happiest Minds Technologies Limited (NSE:HAPPSTMNDS) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Happiest Minds Technologies will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Happiest Minds Technologies from its twin analysts is for revenues of ₹18b in 2024 which, if met, would be a huge 24% increase on its sales over the past 12 months. Statutory earnings per share are presumed to ascend 17% to ₹18.97. Prior to this update, the analysts had been forecasting revenues of ₹16b and earnings per share (EPS) of ₹19.14 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for Happiest Minds Technologies

It may not be a surprise to see that the analysts have reconfirmed their price target of ₹1,147, implying that the uplift in sales is not expected to greatly contribute to Happiest Minds Technologies's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Happiest Minds Technologies at ₹1,190 per share, while the most bearish prices it at ₹1,104. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

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 Happiest Minds Technologies'historical trends, as the 24% annualised revenue growth to the end of 2024 is roughly in line with the 22% annual revenue 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 8.6% per year. So it's pretty clear that Happiest Minds Technologies is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Happiest Minds Technologies.

Analysts are definitely bullish on Happiest Minds Technologies, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. You can learn more, and discover the 1 other concern we've identified, for 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.