Analyst Estimates: Here's What Brokers Think Of Raksul Inc. (TSE:4384) After Its First-Quarter Report

It's been a pretty great week for Raksul Inc. (TSE:4384) shareholders, with its shares surging 19% to JP¥1,334 in the week since its latest first-quarter results. It was a workmanlike result, with revenues of JP¥15b coming in 3.4% ahead of expectations, and statutory earnings per share of JP¥36.30, in line with analyst appraisals. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Raksul after the latest results.

See our latest analysis for Raksul

Following the latest results, Raksul's dual analysts are now forecasting revenues of JP¥61.5b in 2025. This would be a decent 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 45% to JP¥32.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥62.2b and earnings per share (EPS) of JP¥34.85 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at JP¥1,550, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. We can infer from the latest estimates that forecasts expect a continuation of Raksul'shistorical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.0% annually. So it's pretty clear that Raksul is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Raksul. 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¥1,550, with the latest estimates not enough to have an impact on their price targets.

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 2027, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Raksul (1 is a bit concerning!) that you need to take into consideration.

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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.