Analysts Have Been Trimming Their CUC Inc. (TSE:9158) Price Target After Its Latest Report

It's been a sad week for CUC Inc. (TSE:9158), who've watched their investment drop 19% to JP¥1,122 in the week since the company reported its annual result. CUC reported in line with analyst predictions, delivering revenues of JP¥47b and statutory earnings per share of JP¥107, suggesting the business is executing well and in line with its plan. 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.

We've discovered 2 warning signs about CUC. View them for free.

Taking into account the latest results, the consensus forecast from CUC's three analysts is for revenues of JP¥59.2b in 2026. This reflects a major 26% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥108, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of JP¥57.8b and earnings per share (EPS) of JP¥126 in 2026. So it's pretty clear the analysts have mixed opinions on CUC after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.

Check out our latest analysis for CUC

The analysts also cut CUC's price target 9.7% to JP¥1,400, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue.

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. The analysts are definitely expecting CUC's growth to accelerate, with the forecast 26% annualised growth to the end of 2026 ranking favourably alongside historical growth of 10% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect CUC to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CUC. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on CUC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for CUC going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for CUC (1 makes us a bit uncomfortable!) 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.