Coca-Cola Bottlers Japan Holdings Inc. (TSE:2579) Just Reported And Analysts Have Been Lifting Their Price Targets

Shareholders might have noticed that Coca-Cola Bottlers Japan Holdings Inc. (TSE:2579) filed its first-quarter result this time last week. The early response was not positive, with shares down 9.4% to JP¥2,408 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at JP¥190b, statutory losses exploded to JP¥36.67 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, Coca-Cola Bottlers Japan Holdings' seven analysts currently expect revenues in 2025 to be JP¥909.2b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 265% to JP¥78.61. In the lead-up to this report, the analysts had been modelling revenues of JP¥907.6b and earnings per share (EPS) of JP¥79.94 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.

View our latest analysis for Coca-Cola Bottlers Japan Holdings

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.2% to JP¥2,763. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Coca-Cola Bottlers Japan Holdings at JP¥3,200 per share, while the most bearish prices it at JP¥2,400. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Coca-Cola Bottlers Japan Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Coca-Cola Bottlers Japan Holdings'historical trends, as the 2.0% annualised revenue growth to the end of 2025 is roughly in line with the 1.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.0% annually. So although Coca-Cola Bottlers Japan Holdings is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Coca-Cola Bottlers Japan Holdings analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Coca-Cola Bottlers Japan Holdings that you need to be mindful 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.