Industry Analysts Just Made A Meaningful Upgrade To Their BuySell Technologies Co.,Ltd. (TSE:7685) Revenue Forecasts

BuySell Technologies Co.,Ltd. (TSE:7685) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 9.1% to JP¥3,360 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the most recent consensus for BuySell TechnologiesLtd from its five analysts is for revenues of JP¥59b in 2024 which, if met, would be a sizeable 30% increase on its sales over the past 12 months. Per-share earnings are expected to leap 40% to JP¥146. Previously, the analysts had been modelling revenues of JP¥53b and earnings per share (EPS) of JP¥136 in 2024. Sentiment certainly seems to have improved in recent times, with a solid increase in revenue and a modest lift to earnings per share estimates.

View our latest analysis for BuySell TechnologiesLtd

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of JP¥4,013, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. It's clear from the latest estimates that BuySell TechnologiesLtd's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 28% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect BuySell TechnologiesLtd to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at BuySell TechnologiesLtd.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential concerns with BuySell TechnologiesLtd, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other concerns 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 upgrading 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.