Earnings Update: Here's Why Analysts Just Lifted Their Meesho Limited (NSE:MEESHO) Price Target To ₹226
It's been a good week for Meesho Limited (NSE:MEESHO) shareholders, because the company has just released its latest second-quarter results, and the shares gained 3.8% to ₹223. Revenues were in line with expectations, at ₹41b, while statutory losses ballooned to ₹0.28 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for Meesho from 17 analysts is for revenues of ₹174.4b in 2027. If met, it would imply a notable 17% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 56% to ₹0.87. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹177.1b and losses of ₹0.89 per share in 2027.
See our latest analysis for Meesho
The consensus price target rose 7.0% to ₹226, with the analysts increasing their valuations as the business executes in line with forecasts. 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. There are some variant perceptions on Meesho, with the most bullish analyst valuing it at ₹285 and the most bearish at ₹125 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 37% growth on an annualised basis. That is in line with its 40% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.7% per year. So it's pretty clear that Meesho is forecast to grow substantially faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Meesho going out to 2029, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Meesho you should be aware of.
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