Analysts Have Been Trimming Their Daiseki Co.,Ltd. (TSE:9793) Price Target After Its Latest Report

Shareholders might have noticed that Daiseki Co.,Ltd. (TSE:9793) filed its yearly result this time last week. The early response was not positive, with shares down 6.3% to JP¥3,415 in the past week. The result was positive overall - although revenues of JP¥69b were in line with what the analysts predicted, DaisekiLtd surprised by delivering a statutory profit of JP¥193 per share, modestly greater than expected. 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 DaisekiLtd after the latest results.

View our latest analysis for DaisekiLtd

After the latest results, the consensus from DaisekiLtd's five analysts is for revenues of JP¥66.6b in 2025, which would reflect a noticeable 3.8% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to decrease 3.1% to JP¥190 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥70.7b and earnings per share (EPS) of JP¥197 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

It'll come as no surprise then, to learn that the analysts have cut their price target 7.2% to JP¥4,800. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic DaisekiLtd analyst has a price target of JP¥6,100 per share, while the most pessimistic values it at JP¥3,600. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.8% by the end of 2025. This indicates a significant reduction from annual growth of 5.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - DaisekiLtd is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of DaisekiLtd's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for DaisekiLtd going out to 2027, and you can see them free on our platform here.

Even so, be aware that DaisekiLtd is showing 1 warning sign in our investment analysis , you should know about...

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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.