Nitto Boseki Co., Ltd. (TSE:3110) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a pretty great week for Nitto Boseki Co., Ltd. (TSE:3110) shareholders, with its shares surging 12% to JP¥9,780 in the week since its latest interim results. Nitto Boseki reported in line with analyst predictions, delivering revenues of JP¥57b and statutory earnings per share of JP¥353, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Following the latest results, Nitto Boseki's nine analysts are now forecasting revenues of JP¥120.6b in 2026. This would be a reasonable 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 5.8% to JP¥370 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥120.8b 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 Nitto Boseki

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to JP¥8,111. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Nitto Boseki at JP¥10,700 per share, while the most bearish prices it at JP¥6,000. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nitto Boseki's past performance and to peers in the same industry. It's clear from the latest estimates that Nitto Boseki's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nitto Boseki 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Nitto Boseki going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Nitto Boseki you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.