Analyst Estimates: Here's What Brokers Think Of Konami Group Corporation (TSE:9766) After Its Half-Yearly Report

Konami Group Corporation (TSE:9766) just released its latest interim results and things are looking bullish. The company beat expectations with revenues of JP¥184b arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were JP¥127, 2.4% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Konami Group after the latest results.

View our latest analysis for Konami Group

Taking into account the latest results, the current consensus from Konami Group's 14 analysts is for revenues of JP¥408.9b in 2025. This would reflect a modest 4.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.7% to JP¥541. Before this earnings report, the analysts had been forecasting revenues of JP¥405.9b and earnings per share (EPS) of JP¥530 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at JP¥14,930, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Konami Group at JP¥17,000 per share, while the most bearish prices it at JP¥11,600. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Konami Group's growth to accelerate, with the forecast 9.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 7.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. Konami Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Konami Group following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Konami Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Konami Group going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Konami Group Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.