News Flash: One Analyst Just Made A Sizeable Upgrade To Their MATSUDA SANGYO Co., Ltd. (TSE:7456) Forecasts

MATSUDA SANGYO Co., Ltd. (TSE:7456) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that MATSUDA SANGYO will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from MATSUDA SANGYO's lone analyst is for revenues of JP¥440b in 2025 which - if met - would reflect a solid 15% increase on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 9.6% to JP¥332. Previously, the analyst had been modelling revenues of JP¥380b and earnings per share (EPS) of JP¥320 in 2025. The forecasts seem more optimistic now, with a substantial gain in revenue and a small lift in earnings per share estimates.

View our latest analysis for MATSUDA SANGYO

It will come as no surprise to learn that the analyst has increased their price target for MATSUDA SANGYO 14% to JP¥4,000 on the back of these upgrades.

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. It's clear from the latest estimates that MATSUDA SANGYO's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect MATSUDA SANGYO to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at MATSUDA SANGYO.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for MATSUDA SANGYO going out as far as 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 with high insider ownership.

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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.