News Flash: Analysts Just Made A Meaningful Upgrade To Their Hamilton Lane Incorporated (NASDAQ:HLNE) Forecasts

Shareholders in Hamilton Lane Incorporated (NASDAQ:HLNE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Investors have been pretty optimistic on Hamilton Lane too, with the stock up 12% to US$66.90 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the current consensus from Hamilton Lane's seven analysts is for revenues of US$520m in 2023 which - if met - would reflect a meaningful 8.1% increase on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 4.7% to US$3.80. Previously, the analysts had been modelling revenues of US$448m and earnings per share (EPS) of US$3.44 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Our analysis indicates that HLNE is potentially undervalued!

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.1% annually. So it's pretty clear that Hamilton Lane is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Hamilton Lane's future.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Hamilton Lane analysts - going out to 2025, 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.