News Flash: Analysts Just Made A Dazzling Upgrade To Their SBI Sumishin Net Bank, Ltd. (TSE:7163) Forecasts

Shareholders in SBI Sumishin Net Bank, Ltd. (TSE:7163) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for SBI Sumishin Net Bank from its five analysts is for revenues of JP¥140b in 2025 which, if met, would be a huge 39% increase on its sales over the past 12 months. Per-share earnings are expected to climb 20% to JP¥188. Previously, the analysts had been modelling revenues of JP¥100b and earnings per share (EPS) of JP¥183 in 2025. The forecasts seem more optimistic now, with a sizeable gain to revenue and a small increase to earnings per share estimates.

See our latest analysis for SBI Sumishin Net Bank

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥2,663, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting SBI Sumishin Net Bank's growth to accelerate, with the forecast 39% annualised growth to the end of 2025 ranking favourably alongside historical growth of 12% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SBI Sumishin Net Bank to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at SBI Sumishin Net Bank.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for SBI Sumishin Net Bank going out to 2027, and you can see them free on our platform here..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.