One Topy Industries, Limited (TSE:7231) Analyst Is Reducing Their Forecasts For This Year

Today is shaping up negative for Topy Industries, Limited (TSE:7231) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the latest downgrade, the solitary analyst covering Topy Industries provided consensus estimates of JP¥297b revenue in 2025, which would reflect a noticeable 6.2% decline on its sales over the past 12 months. Statutory earnings per share are presumed to leap 155% to JP¥228. Previously, the analyst had been modelling revenues of JP¥330b and earnings per share (EPS) of JP¥315 in 2025. The forecasts seem less optimistic after the new consensus numbers, with lower sales estimates and making a large cut to earnings per share forecasts.

View our latest analysis for Topy Industries

It'll come as no surprise then, to learn that the analyst has cut their price target 19% to JP¥2,100.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 12% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 7.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.6% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Topy Industries is expected to lag the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Topy Industries. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Topy Industries' revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Topy Industries.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for 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 downgrading 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.