Jefferies cuts Entero stock rating, lowers price target to INR1,320

Published 28/05/2025, 16:08
Jefferies cuts Entero stock rating, lowers price target to INR1,320

On Wednesday, Entero Healthcare (ENTERO:IN) experienced a change in stock rating as Jefferies analyst firm downgraded the company from Buy to Hold. Accompanying this downgrade, the price target was also reduced, moving from INR1,650.00 to INR1,320.00. The revision in Entero’s stock outlook came after the company’s fourth-quarter results fell short of Jefferies’ expectations due to lower organic growth.

Entero Healthcare reported earnings that were 6% below Jefferies’ estimates. This performance gap prompted the firm to reassess the company’s future financial prospects. Despite Entero’s recent announcement of acquiring six distributors, which are projected to contribute INR4.8 billion in revenue by the fiscal year 2025, Jefferies found the company’s fiscal year 2026 sales growth guidance of over 30% and EBITDA margin of above 4% to be underwhelming.

The lower-than-anticipated revenue growth and margin profile led to a downward adjustment in earnings projections for Entero. Jefferies anticipates a 15-20% cut in earnings per share (EPS) for the company. The new price target of INR1,320 is based on a 25 times multiple of the projected March 2027 EPS, reflecting a more conservative valuation in light of the revised earnings outlook.

The downgrade to a Hold rating signifies a shift in Jefferies’ perspective on Entero’s stock, suggesting that the firm now views the company’s shares as fairly valued given the current information. This adjustment is a direct response to the company’s latest financial results and its future growth and profitability projections, which have not met the expectations previously set by Jefferies’ analysts.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.