Time To Worry? Analysts Just Downgraded Their COLOPL, Inc. (TSE:3668) Outlook

Market forces rained on the parade of COLOPL, Inc. (TSE:3668) shareholders today, when the analysts downgraded their forecasts for next year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the latest downgrade, the two analysts covering COLOPL provided consensus estimates of JP¥25b revenue in 2026, which would reflect a noticeable 5.5% decline on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 83% to JP¥2.70 per share. Previously, the analysts had been modelling revenues of JP¥30b and earnings per share (EPS) of JP¥11.70 in 2026. There looks to have been a major change in sentiment regarding COLOPL's prospects, with a measurable cut to revenues and the analysts now forecasting a loss instead of a profit.

Check out our latest analysis for COLOPL

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 12% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 9.7% annually. So while a broad number of companies are forecast to grow, unfortunately COLOPL is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that analysts are expecting COLOPL to become unprofitable next year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that COLOPL's revenues are expected to grow slower than the wider market. Given the serious cut to next year's outlook, it's clear that analysts have turned more bearish on COLOPL, and we wouldn't blame shareholders for feeling a little more cautious themselves.

Not only have the analysts been downgrading the stock, but it looks like COLOPL might find it hard to maintain its dividends, if these forecasts prove accurate. For more information, you can click here to learn more about our dividend analysis and the 1 potential flag we've identified.

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.

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

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.