News Flash: One Analyst Just Made A Notable Upgrade To Their Taoka Chemical Company, Limited (TSE:4113) Forecasts

Taoka Chemical Company, Limited (TSE:4113) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline. The market seems to be pricing in some improvement in the business too, with the stock up 9.8% over the past week, closing at JP¥1,172. Could this big upgrade push the stock even higher?

We've discovered 2 warning signs about Taoka Chemical Company. View them for free.

After the upgrade, the single analyst covering Taoka Chemical Company is now predicting revenues of JP¥36b in 2026. If met, this would reflect a substantial 20% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 20% to JP¥124. Before this latest update, the analyst had been forecasting revenues of JP¥33b and earnings per share (EPS) of JP¥119 in 2026. The forecasts seem more optimistic now, with a decent improvement in revenue and a small increase to earnings per share estimates.

View our latest analysis for Taoka Chemical Company

With these upgrades, we're not surprised to see that the analyst has lifted their price target 5.9% to JP¥1,800 per share.

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. One thing stands out from these estimates, which is that Taoka Chemical Company is forecast to grow faster in the future than it has in the past, with revenues expected to display 20% annualised growth until the end of 2026. If achieved, this would be a much better result than the 0.6% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.6% per year. So it looks like Taoka Chemical Company is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Taoka Chemical Company.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Taoka Chemical Company going out as far as 2028, 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.