Earnings Update: Here's Why Analysts Just Lifted Their Open House Group Co., Ltd. (TSE:3288) Price Target To JP¥8,470

Shareholders of Open House Group Co., Ltd. (TSE:3288) will be pleased this week, given that the stock price is up 11% to JP¥8,685 following its latest annual results. It was a credible result overall, with revenues of JP¥1.3t and statutory earnings per share of JP¥875 both in line with analyst estimates, showing that Open House Group is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Open House Group's six analysts is for revenues of JP¥1.45t in 2026. This reflects a notable 8.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 11% to JP¥989. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.42t and earnings per share (EPS) of JP¥958 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Check out our latest analysis for Open House Group

It will come as no surprise to learn that the analysts have increased their price target for Open House Group 12% to JP¥8,470on the back of these upgrades. 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. There are some variant perceptions on Open House Group, with the most bullish analyst valuing it at JP¥10,500 and the most bearish at JP¥6,850 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Open House Group shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Open House Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.6% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.5% annually. So it's pretty clear that, while Open House Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Open House Group following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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. We have forecasts for Open House Group going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Open House Group that you should be aware of.

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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.