LTIMindtree Limited (NSE:LTIM) Analysts Are Pretty Bullish On The Stock After Recent Results

Investors in LTIMindtree Limited (NSE:LTIM) had a good week, as its shares rose 3.4% to close at ₹5,763 following the release of its first-quarter results. It looks like the results were a bit of a negative overall. While revenues of ₹91b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.7% to hit ₹38.23 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for LTIMindtree

Taking into account the latest results, the consensus forecast from LTIMindtree's 39 analysts is for revenues of ₹381.3b in 2025. This reflects an okay 6.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.0% to ₹168. Before this earnings report, the analysts had been forecasting revenues of ₹377.2b and earnings per share (EPS) of ₹169 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.2% to ₹5,591. It looks as though they previously had some doubts over whether the business would live up to their expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values LTIMindtree at ₹7,000 per share, while the most bearish prices it at ₹4,199. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LTIMindtree's past performance and to peers in the same industry. It's pretty clear that there is an expectation that LTIMindtree's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.1% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.7% annually. So it's pretty clear that, while LTIMindtree's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple LTIMindtree analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for LTIMindtree that you need to be mindful of.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com