Miura Co., Ltd. (TSE:6005) Analysts Just Trimmed Their Revenue Forecasts By 14%

One thing we could say about the analysts on Miura Co., Ltd. (TSE:6005) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Miura's dual analysts are now forecasting revenues of JP¥213b in 2025. This would be a sizeable 34% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to ascend 14% to JP¥200. Before this latest update, the analysts had been forecasting revenues of JP¥249b and earnings per share (EPS) of JP¥204 in 2025. So there's been a clear change in analyst sentiment in the recent update, with the analysts making a measurable cut to revenues and reconfirming their earnings per share estimates.

Check out our latest analysis for Miura

The consensus has reconfirmed its price target of JP¥4,428, showing that the analysts don't expect weaker sales expectationsthis year to have a material impact on Miura's market value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Miura's past performance and to peers in the same industry. It's clear from the latest estimates that Miura's rate of growth is expected to accelerate meaningfully, with the forecast 34% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Miura is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Miura going forwards.

Uncomfortably, our automated valuation tool also suggests that Miura stock could be overvalued following the downgrade. Shareholders could be left disappointed if these estimates play out. You can learn more about our valuation methodology for 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 downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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