Analyst Estimates: Here's What Brokers Think Of Nakanishi Inc. (TSE:7716) After Its Third-Quarter Report

Shareholders might have noticed that Nakanishi Inc. (TSE:7716) filed its quarterly result this time last week. The early response was not positive, with shares down 2.8% to JP¥1,985 in the past week. It was a credible result overall, with revenues of JP¥20b and statutory earnings per share of JP¥101 both in line with analyst estimates, showing that Nakanishi is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Nakanishi from six analysts is for revenues of JP¥85.5b in 2026. If met, it would imply an okay 8.0% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 62% to JP¥130. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥85.5b and earnings per share (EPS) of JP¥130 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Nakanishi

The analysts reconfirmed their price target of JP¥2,800, 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. Currently, the most bullish analyst values Nakanishi at JP¥3,000 per share, while the most bearish prices it at JP¥2,300. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We would highlight that Nakanishi's revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2026 being well below the historical 18% p.a. growth over the last five years. Compare this to the 39 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.6% per year. Factoring in the forecast slowdown in growth, it looks like Nakanishi is forecast to grow at about the same rate as 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. The consensus price target held steady at JP¥2,800, with the latest estimates not enough to have an impact on their price targets.

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 Nakanishi going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Nakanishi 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.