Earnings Update: Here's Why Analysts Just Lifted Their Nagase & Co., Ltd. (TSE:8012) Price Target To JP¥4,000

As you might know, Nagase & Co., Ltd. (TSE:8012) recently reported its interim numbers. Results were roughly in line with estimates, with revenues of JP¥480b and statutory earnings per share of JP¥230. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the two analysts covering Nagase are now predicting revenues of JP¥967.0b in 2026. If met, this would reflect an okay 2.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 37% to JP¥323. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥956.0b and earnings per share (EPS) of JP¥308 in 2026. So the consensus seems to have become somewhat more optimistic on Nagase's earnings potential following these results.

Check out our latest analysis for Nagase

The consensus price target rose 21% to JP¥4,000, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Nagase's rate of growth is expected to accelerate meaningfully, with the forecast 5.0% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Nagase is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nagase's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

You can also view our analysis of Nagase's balance sheet, and whether we think Nagase is carrying too much debt, for free on our platform here.

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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.