LITALICO Inc. (TSE:7366) Just Reported, And Analysts Assigned A JP¥1,600 Price Target

The investors in LITALICO Inc.'s (TSE:7366) will be rubbing their hands together with glee today, after the share price leapt 23% to JP¥1,050 in the week following its third-quarter results. It was a credible result overall, with revenues of JP¥9.3b and statutory earnings per share of JP¥99.38 both in line with analyst estimates, showing that LITALICO 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LITALICO after the latest results.

View our latest analysis for LITALICO

Taking into account the latest results, the consensus forecast from LITALICO's three analysts is for revenues of JP¥41.6b in 2026. This reflects a huge 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 13% to JP¥72.57. Before this earnings report, the analysts had been forecasting revenues of JP¥41.4b and earnings per share (EPS) of JP¥68.00 in 2026. So the consensus seems to have become somewhat more optimistic on LITALICO's earnings potential following these results.

The average the analysts price target fell 25% to JP¥1,600, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of LITALICO'shistorical trends, as the 19% annualised revenue growth to the end of 2026 is roughly in line with the 19% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.7% per year. So it's pretty clear that LITALICO is forecast to grow substantially faster than its industry.

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 LITALICO following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LITALICO's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on LITALICO. Long-term earnings power is much more important than next year's profits. We have forecasts for LITALICO going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for LITALICO (1 is potentially serious) 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.