New Forecasts: Here's What Analysts Think The Future Holds For Nippon Light Metal Holdings Company, Ltd. (TSE:5703)

Nippon Light Metal Holdings Company, Ltd. (TSE:5703) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's 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.

After this upgrade, Nippon Light Metal Holdings Company's three analysts are now forecasting revenues of JP¥564b in 2025. This would be a satisfactory 7.7% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 43% to JP¥208. Before this latest update, the analysts had been forecasting revenues of JP¥500b and earnings per share (EPS) of JP¥186 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Nippon Light Metal Holdings Company

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥2,057, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Nippon Light Metal Holdings Company's growth to accelerate, with the forecast 7.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nippon Light Metal Holdings Company 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. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Nippon Light Metal Holdings Company could be a good candidate for more research.

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

You can also see our analysis of Nippon Light Metal Holdings Company's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com