JP¥6,350 - That's What Analysts Think Lifedrink Company, Inc. (TSE:2585) Is Worth After These Results

Shareholders of Lifedrink Company, Inc. (TSE:2585) will be pleased this week, given that the stock price is up 15% to JP¥7,340 following its latest first-quarter results. It was a workmanlike result, with revenues of JP¥11b coming in 3.6% ahead of expectations, and statutory earnings per share of JP¥243, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Lifedrink Company

Taking into account the latest results, the consensus forecast from Lifedrink Company's four analysts is for revenues of JP¥44.7b in 2025. This reflects a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 27% to JP¥297. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥44.7b and earnings per share (EPS) of JP¥300 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.

The consensus price target rose 6.7% to JP¥6,350despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Lifedrink Company's earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Lifedrink Company, with the most bullish analyst valuing it at JP¥7,900 and the most bearish at JP¥4,200 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that Lifedrink Company's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 18% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.9% annually. So it's pretty clear that, while Lifedrink Company's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have forecasts for Lifedrink Company going out to 2027, and you can see them free on our platform here.

Even so, be aware that Lifedrink Company is showing 1 warning sign in our investment analysis , you should know about...

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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.