Meesho Limited (NSE:MEESHO) First-Quarter Results: Here's What Analysts Are Forecasting For This Year
A week ago, Meesho Limited (NSE:MEESHO) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Revenues beat expectations coming in at₹37b, ahead of estimates by 2.3%. Statutory losses were somewhat smaller thanthe analysts expected, coming in at ₹0.28 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
After the latest results, the 13 analysts covering Meesho are now predicting revenues of ₹174.4b in 2027. If met, this would reflect a huge 26% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 65% to ₹0.92. Before this earnings announcement, the analysts had been modelling revenues of ₹170.7b and losses of ₹0.80 per share in 2027. So it's pretty clear the analysts have mixed opinions on Meesho even after this update; although they upped their revenue numbers, it came at the cost of a considerable increase in per-share losses.
View our latest analysis for Meesho
There was no major change to the consensus price target of ₹204, with growing revenues seemingly enough to offset the concern of growing losses. 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. There are some variant perceptions on Meesho, with the most bullish analyst valuing it at ₹240 and the most bearish at ₹125 per share. 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.
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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 36% growth on an annualised basis. That is in line with its 42% 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 8.2% per year. So it's pretty clear that Meesho is forecast to grow substantially faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at ₹204, with the latest estimates not enough to have an impact on their price targets.
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 Meesho going out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Meesho you should know about.
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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.