Forecast: Analysts Think MODEC, Inc.'s (TSE:6269) Business Prospects Have Improved Drastically

MODEC, Inc. (TSE:6269) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from MODEC's dual analysts is for revenues of JP¥566b in 2024, which would reflect a notable 8.2% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to descend 13% to JP¥290 in the same period. Before this latest update, the analysts had been forecasting revenues of JP¥506b and earnings per share (EPS) of JP¥215 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for MODEC

With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to JP¥3,750 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of MODEC'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 11% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.6% per year. So it's pretty clear that MODEC is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, MODEC could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for MODEC going out as far as 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.

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