Analyst Estimates: Here's What Brokers Think Of Japan Exchange Group, Inc. (TSE:8697) After Its Interim Report

Last week saw the newest interim earnings release from Japan Exchange Group, Inc. (TSE:8697), an important milestone in the company's journey to build a stronger business. It was a credible result overall, with revenues of JP¥41b and statutory earnings per share of JP¥15.90 both in line with analyst estimates, showing that Japan Exchange Group is executing in line with expectations. 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.

Check out our latest analysis for Japan Exchange Group

Taking into account the latest results, the most recent consensus for Japan Exchange Group from four analysts is for revenues of JP¥166.5b in 2025. If met, it would imply a reasonable 3.0% increase on its revenue over the past 12 months. Statutory earnings per share are expected to reduce 3.2% to JP¥57.41 in the same period. In the lead-up to this report, the analysts had been modelling revenues of JP¥163.7b and earnings per share (EPS) of JP¥58.56 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at JP¥1,735. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Japan Exchange Group analyst has a price target of JP¥2,300 per share, while the most pessimistic values it at JP¥1,390. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Japan Exchange Group's rate of growth is expected to accelerate meaningfully, with the forecast 6.1% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.7% p.a. 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 3.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Japan Exchange Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Japan Exchange Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Japan Exchange Group 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 1 warning sign for Japan Exchange Group that 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.