Last week, you might have seen that Latent View Analytics Limited (NSE:LATENTVIEW) released its quarterly result to the market. The early response was not positive, with shares down 7.1% to ₹295 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ₹2.9b, statutory earnings were in line with expectations, at ₹9.56 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the consensus forecast from Latent View Analytics' five analysts is for revenues of ₹12.4b in 2027. This reflects a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 13% to ₹10.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹12.6b and earnings per share (EPS) of ₹11.00 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Check out our latest analysis for Latent View Analytics
The analysts made no major changes to their price target of ₹326, suggesting the downgrades are not expected to have a long-term impact on Latent View Analytics' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Latent View Analytics at ₹410 per share, while the most bearish prices it at ₹285. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Latent View Analytics' revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2027 being well below the historical 24% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. Even after the forecast slowdown in growth, it seems obvious that Latent View Analytics is also expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Latent View Analytics. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Latent View Analytics. Long-term earnings power is much more important than next year's profits. We have forecasts for Latent View Analytics going out to 2029, and you can see them free on our platform here.
You can also see our analysis of Latent View Analytics' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.