One World Co., Ltd. (TSE:3612) Analyst Just Lifted Their Revenue Forecasts By A Sizeable 22%

Celebrations may be in order for World Co., Ltd. (TSE:3612) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from World's solitary analyst is for revenues of JP¥301b in 2026, which would reflect a huge 36% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 135% to JP¥417. Prior to this update, the analyst had been forecasting revenues of JP¥247b and earnings per share (EPS) of JP¥394 in 2026. The forecasts seem more optimistic now, with a considerable lift to revenue and a modest lift to earnings per share estimates.

View our latest analysis for World

With these upgrades, we're not surprised to see that the analyst has lifted their price target 27% to JP¥3,800 per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting World's growth to accelerate, with the forecast 28% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.3% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that World is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at World.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for World going out as far as 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.