Earnings Release: Here's Why Analysts Cut Their Symphony Limited (NSE:SYMPHONY) Price Target To ₹874

Last week, you might have seen that Symphony Limited (NSE:SYMPHONY) released its first-quarter result to the market. The early response was not positive, with shares down 4.6% to ₹652 in the past week. It was a pretty good result, with revenues of ₹3.8b, and Symphony came in a solid 11% ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus from Symphony's six analysts is for revenues of ₹13.1b in 2027. This would reflect a solid 13% increase on its revenue over the past 12 months. Earnings are expected to improve, with Symphony forecast to report a statutory profit of ₹19.15 per share. Before this earnings report, the analysts had been forecasting revenues of ₹13.1b and earnings per share (EPS) of ₹23.18 in 2027. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Check out our latest analysis for Symphony

The average price target fell 8.0% to ₹874, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 Symphony analyst has a price target of ₹1,216 per share, while the most pessimistic values it at ₹711. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Symphony's growth to accelerate, with the forecast 18% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Symphony is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 estimates - from multiple Symphony analysts - going out to 2029, and you can see them free on our platform here.

You still need to take note of risks, for example - Symphony has 1 warning sign we think you should be aware 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.