RateGain Travel Technologies Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

A week ago, RateGain Travel Technologies Limited (NSE:RATEGAIN) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of ₹2.5b arriving 2.3% ahead of forecasts. Statutory earnings per share (EPS) were ₹3.58, 9.3% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for RateGain Travel Technologies

Taking into account the latest results, the current consensus from RateGain Travel Technologies' six analysts is for revenues of ₹11.6b in 2025. This would reflect a major 31% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 54% to ₹16.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹11.3b and earnings per share (EPS) of ₹16.27 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 23% to ₹933per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic RateGain Travel Technologies analyst has a price target of ₹1,050 per share, while the most pessimistic values it at ₹830. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting RateGain Travel Technologies is an easy business to forecast or the the analysts are all using similar assumptions.

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 RateGain Travel Technologies'historical trends, as the 24% annualised revenue growth to the end of 2025 is roughly in line with the 23% annual 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 15% per year. So although RateGain Travel Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around RateGain Travel Technologies' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for RateGain Travel Technologies going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with RateGain Travel Technologies .

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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.