Rainbows and Unicorns: The Infibeam Avenues Limited (NSE:INFIBEAM) Analyst Just Became A Lot More Optimistic

Infibeam Avenues Limited (NSE:INFIBEAM) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the current consensus from Infibeam Avenues' solo analyst is for revenues of ₹9.9b in 2022 which - if met - would reflect a major 25% increase on its sales over the past 12 months. Statutory earnings per share are presumed to jump 101% to ₹1.04. Previously, the analyst had been modelling revenues of ₹7.6b and earnings per share (EPS) of ₹0.68 in 2022. 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.

Check out our latest analysis for Infibeam Avenues

Although the analyst has upgraded their earnings estimates, there was no change to the consensus price target of ₹86.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Infibeam Avenues' growth to accelerate, with the forecast 25% annualised growth to the end of 2022 ranking favourably alongside historical growth of 8.2% per annum 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 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Infibeam Avenues to grow faster than the wider 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. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Infibeam Avenues.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Infibeam Avenues going out as far as 2023, 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.
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