This Analyst Just Made A Meaningful Upgrade To Their TSI Holdings Co.,Ltd. (TSE:3608) Earnings Forecasts

Shareholders in TSI Holdings Co.,Ltd. (TSE:3608) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

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After the upgrade, the solo analyst covering TSI HoldingsLtd is now predicting revenues of JP¥168b in 2026. If met, this would reflect a solid 14% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to plunge 63% to JP¥110 in the same period. Prior to this update, the analyst had been forecasting revenues of JP¥151b and earnings per share (EPS) of JP¥88.30 in 2026. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for TSI HoldingsLtd

As a result, it might be a surprise to see that the analyst has cut their price target 6.3% to JP¥1,500, which could suggest the forecast improvement in performance is not expected to last.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analyst is definitely expecting TSI HoldingsLtd's growth to accelerate, with the forecast 29% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect TSI HoldingsLtd to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, TSI HoldingsLtd could be one for the watch list.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential concern with TSI HoldingsLtd, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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.