Industry Analysts Just Upgraded Their MS&AD Insurance Group Holdings, Inc. (TSE:8725) Revenue Forecasts By 15%

Celebrations may be in order for MS&AD Insurance Group Holdings, Inc. (TSE:8725) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

Following the upgrade, the consensus from nine analysts covering MS&AD Insurance Group Holdings is for revenues of JP¥6.1t in 2025, implying a measurable 6.9% decline in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 73% to JP¥401. Before this latest update, the analysts had been forecasting revenues of JP¥5.3t and earnings per share (EPS) of JP¥400 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for MS&AD Insurance Group Holdings

Analysts increased their price target 7.7% to JP¥3,526, perhaps signalling that higher revenues are a strong leading indicator for MS&AD Insurance Group Holdings's valuation.

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 sales are expected to reverse, with a forecast 6.9% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 3.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - MS&AD Insurance Group Holdings is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at MS&AD Insurance Group Holdings.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple MS&AD Insurance Group Holdings analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.

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