Analyst Estimates: Here's What Brokers Think Of Nifco Inc. (TSE:7988) After Its Interim Report

As you might know, Nifco Inc. (TSE:7988) recently reported its half-year numbers. Nifco reported in line with analyst predictions, delivering revenues of JP¥88b and statutory earnings per share of JP¥91.24, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Nifco's seven analysts is for revenues of JP¥357.6b in 2026. This would reflect a credible 2.2% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dive 26% to JP¥375 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥358.6b and earnings per share (EPS) of JP¥372 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Nifco

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥4,879. 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. Currently, the most bullish analyst values Nifco at JP¥5,300 per share, while the most bearish prices it at JP¥4,100. This is a very narrow spread of estimates, implying either that Nifco is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Nifco's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.4% growth on an annualised basis. This is compared to a historical growth rate of 8.1% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.8% per year. Even after the forecast slowdown in growth, it seems obvious that Nifco is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at JP¥4,879, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Nifco. Long-term earnings power is much more important than next year's profits. We have forecasts for Nifco going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Nifco that you should be aware of.

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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.