Yahoo Finance What Are Analysts Saying About Cohort PLC’s (LON:CHRT) Long Term Outlook?
The latest earnings release Cohort PLC’s (LON:CHRT) announced in April 2018 suggested that the business gained from a significant tailwind, more than doubling its earnings from the prior year. Investors may find it useful to understand how market analysts perceive Cohort’s earnings growth trajectory over the next few years and whether the future looks even brighter than the past. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings.
View our latest analysis for Cohort
Analysts’ outlook for the upcoming year seems rather subdued, with earnings rising by a single digit 6.4%. The growth outlook in the following year seems much more optimistic with rates reaching double digit 58% compared to today’s earnings, and finally hitting UK£14m by 2021.
While it’s informative knowing the rate of growth each year relative to today’s value, it may be more valuable to determine the rate at which the business is moving on average every year. The pro of this method is that it removes the impact of near term flucuations and accounts for the overarching direction of Cohort’s earnings trajectory over time, which may be more relevant for long term investors. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 19%. This means that, we can presume Cohort will grow its earnings by 19% every year for the next couple of years.
Next Steps:
For Cohort, I’ve put together three relevant factors you should further examine:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is CHRT worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CHRT is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of CHRT? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
