This Just In: Analysts Are Boosting Their MTG Co., Ltd. (TSE:7806) Outlook for This Year

MTG Co., Ltd. (TSE:7806) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

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After this upgrade, MTG's four analysts are now forecasting revenues of JP¥88b in 2025. This would be a notable 12% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to reduce 4.3% to JP¥104 in the same period. Prior to this update, the analysts had been forecasting revenues of JP¥76b and earnings per share (EPS) of JP¥78.07 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for MTG

It will come as no surprise to learn that the analysts have increased their price target for MTG 81% to JP¥2,900 on the back of these upgrades.

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 MTG'shistorical trends, as the 16% annualised revenue growth to the end of 2025 is roughly in line with the 17% annual revenue 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 4.0% per year. So although MTG is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at MTG.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple MTG analysts - going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.