Bearish: Analysts Just Cut Their ideaForge Technology Limited (NSE:IDEAFORGE) Revenue and EPS estimates
The analysts covering ideaForge Technology Limited (NSE:IDEAFORGE) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
Following the downgrade, the latest consensus from ideaForge Technology's twin analysts is for revenues of ₹4.0b in 2027, which would reflect a major 42% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 890% to ₹7.85. Previously, the analysts had been modelling revenues of ₹4.5b and earnings per share (EPS) of ₹10.35 in 2027. Indeed, we can see that the analysts are a lot more bearish about ideaForge Technology's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for ideaForge Technology
Analysts made no major changes to their price target of ₹1,046, suggesting the downgrades are not expected to have a long-term impact on ideaForge Technology's valuation.
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. For example, we noticed that ideaForge Technology's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 42% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 10% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 16% annually. So it looks like ideaForge Technology is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for ideaForge Technology. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on ideaForge Technology after the downgrade.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2029, which can be seen for 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 backed by insiders.
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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.