GENDA Inc. (TSE:9166) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a pretty great week for GENDA Inc. (TSE:9166) shareholders, with its shares surging 12% to JP¥2,972 in the week since its latest quarterly results. It was a workmanlike result, with revenues of JP¥28b coming in 2.3% ahead of expectations, and statutory earnings per share of JP¥63.21, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for GENDA

Taking into account the latest results, the current consensus from GENDA's twin analysts is for revenues of JP¥143.5b in 2026. This would reflect a huge 52% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 116% to JP¥98.70. Before this earnings report, the analysts had been forecasting revenues of JP¥138.5b and earnings per share (EPS) of JP¥84.15 in 2026. So it seems there's been a definite increase in optimism about GENDA's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for GENDA 100% to JP¥2,400on 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. The analysts are definitely expecting GENDA's growth to accelerate, with the forecast 40% annualised growth to the end of 2026 ranking favourably alongside historical growth of 29% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.6% 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 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 GENDA following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for GENDA you should be aware of, and 2 of them are concerning.

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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.