Here's What Analysts Are Forecasting For Solasto Corporation (TSE:6197) After Its Interim Results

Investors in Solasto Corporation (TSE:6197) had a good week, as its shares rose 2.7% to close at JP¥493 following the release of its half-year results. It was a credible result overall, with revenues of JP¥68b and statutory earnings per share of JP¥24.11 both in line with analyst estimates, showing that Solasto is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Solasto

Taking into account the latest results, the current consensus from Solasto's four analysts is for revenues of JP¥141.6b in 2025. This would reflect a satisfactory 3.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 977% to JP¥35.28. Before this earnings report, the analysts had been forecasting revenues of JP¥141.2b and earnings per share (EPS) of JP¥35.06 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 analysts reconfirmed their price target of JP¥700, showing that the business is executing well and in line with expectations. 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. The most optimistic Solasto analyst has a price target of JP¥880 per share, while the most pessimistic values it at JP¥550. 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.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 7.5% growth on an annualised basis. That is in line with its 8.7% annual 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 4.9% per year. So although Solasto is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Solasto going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 4 warning signs for Solasto 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.