Broker Revenue Forecasts For GENDA Inc. (TSE:9166) Are Surging Higher

GENDA Inc. (TSE:9166) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on GENDA too, with the stock up 16% to JP¥2,630 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from GENDA's two analysts is for revenues of JP¥105b in 2025 which - if met - would reflect a major 53% increase on its sales over the past 12 months. Per-share earnings are expected to soar 35% to JP¥67.45. Before this latest update, the analysts had been forecasting revenues of JP¥78b and earnings per share (EPS) of JP¥63.95 in 2025. The most recent forecasts are noticeably more optimistic, with a considerable lift to revenue estimates and a lift to earnings per share as well.

Check out our latest analysis for GENDA

It will come as no surprise to learn that the analysts have increased their price target for GENDA 100% to JP¥2,400 on the back of these upgrades.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that GENDA's rate of growth is expected to accelerate meaningfully, with the forecast 77% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 41% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that GENDA is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at GENDA.

Analysts are clearly in love with GENDA at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.