Daiei Kankyo Co., Ltd. (TSE:9336) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Daiei Kankyo Co., Ltd. (TSE:9336) had a good week, as its shares rose 6.9% to close at JP¥3,585 following the release of its interim results. Daiei Kankyo reported in line with analyst predictions, delivering revenues of JP¥40b and statutory earnings per share of JP¥146, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 three analysts covering Daiei Kankyo are now predicting revenues of JP¥85.0b in 2026. If met, this would reflect a reasonable 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 10% to JP¥152. In the lead-up to this report, the analysts had been modelling revenues of JP¥85.0b and earnings per share (EPS) of JP¥153 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Daiei Kankyo

The consensus price target rose 9.5% to JP¥3,750despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Daiei Kankyo's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Daiei Kankyo analyst has a price target of JP¥4,100 per share, while the most pessimistic values it at JP¥3,400. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Daiei Kankyo's past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 7.5% growth on an annualised basis. That is in line with its 8.3% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.3% per year. So although Daiei Kankyo is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Daiei Kankyo going out to 2028, and you can see them free on our platform here..

You can also view our analysis of Daiei Kankyo's balance sheet, and whether we think Daiei Kankyo 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.