Mitsubishi Estate Co., Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

The yearly results for Mitsubishi Estate Co., Ltd. (TSE:8802) were released last week, making it a good time to revisit its performance. Mitsubishi Estate reported JP¥1.6t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥151 beat expectations, being 7.6% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Mitsubishi Estate after the latest results.

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After the latest results, the ten analysts covering Mitsubishi Estate are now predicting revenues of JP¥1.70t in 2026. If met, this would reflect an okay 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 2.4% to JP¥156. Before this earnings report, the analysts had been forecasting revenues of JP¥1.66t and earnings per share (EPS) of JP¥154 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

Check out our latest analysis for Mitsubishi Estate

It may not be a surprise to see thatthe analysts have reconfirmed their price target of JP¥2,944, implying that the uplift in revenue is not expected to greatly contribute to Mitsubishi Estate's valuation in the near term. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Mitsubishi Estate at JP¥3,710 per share, while the most bearish prices it at JP¥2,370. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Mitsubishi Estate's past performance and to peers in the same industry. The analysts are definitely expecting Mitsubishi Estate's growth to accelerate, with the forecast 7.5% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.9% 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 4.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Mitsubishi Estate to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Mitsubishi Estate analysts - going out to 2028, and you can see them free on our platform 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.