What Does The Future Hold For M&A Research Institute Holdings Inc. (TSE:9552)? These Analysts Have Been Cutting Their Estimates

The analysts covering M&A Research Institute Holdings Inc. (TSE:9552) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the latest consensus from M&A Research Institute Holdings' seven analysts is for revenues of JP¥24b in 2025, which would reflect a substantial 44% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 26% to JP¥125. Previously, the analysts had been modelling revenues of JP¥27b and earnings per share (EPS) of JP¥138 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a small dip in earnings per share numbers as well.

View our latest analysis for M&A Research Institute Holdings

The consensus price target fell 21% to JP¥5,340, with the weaker earnings outlook clearly leading analyst valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the M&A Research Institute Holdings' past performance and to peers in the same industry. We would highlight that M&A Research Institute Holdings' revenue growth is expected to slow, with the forecast 44% annualised growth rate until the end of 2025 being well below the historical 92% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% annually. So it's pretty clear that, while M&A Research Institute Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for M&A Research Institute Holdings. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of M&A Research Institute Holdings' future valuation. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on M&A Research Institute Holdings after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for M&A Research Institute Holdings going out to 2027, and you can see them free 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.