Nihon M&A Center Holdings Inc. (TSE:2127) Just Reported And Analysts Have Been Cutting Their Estimates

Shareholders of Nihon M&A Center Holdings Inc. (TSE:2127) will be pleased this week, given that the stock price is up 16% to JP¥669 following its latest yearly results. Nihon M&A Center Holdings missed revenue estimates by 3.2%, coming in atJP¥44b, although statutory earnings per share (EPS) of JP¥34.54 beat expectations, coming in 4.2% ahead of analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from Nihon M&A Center Holdings' six analysts is for revenues of JP¥46.6b in 2026. This reflects an okay 5.7% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be JP¥35.00, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥50.9b and earnings per share (EPS) of JP¥38.49 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Check out our latest analysis for Nihon M&A Center Holdings

It'll come as no surprise then, to learn that the analysts have cut their price target 6.2% to JP¥727. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Nihon M&A Center Holdings at JP¥900 per share, while the most bearish prices it at JP¥520. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 5.7% growth on an annualised basis. That is in line with its 5.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 1.8% annually. So it's pretty clear that Nihon M&A Center Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nihon M&A Center Holdings. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Simply Wall St, we have a full range of analyst estimates for Nihon M&A Center Holdings going out to 2028, and you can see them free on our platform here..

You can also see our analysis of Nihon M&A Center Holdings' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.