Komeri Co.,Ltd. (TSE:8218) Just Reported, And Analysts Assigned A JP¥3,433 Price Target

Shareholders might have noticed that Komeri Co.,Ltd. (TSE:8218) filed its quarterly result this time last week. The early response was not positive, with shares down 2.2% to JP¥3,045 in the past week. KomeriLtd reported in line with analyst predictions, delivering revenues of JP¥97b and statutory earnings per share of JP¥286, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for KomeriLtd

Following last week's earnings report, KomeriLtd's three analysts are forecasting 2026 revenues to be JP¥381.9b, approximately in line with the last 12 months. Per-share earnings are expected to expand 16% to JP¥323. Before this earnings report, the analysts had been forecasting revenues of JP¥382.8b and earnings per share (EPS) of JP¥328 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target fell 13% to JP¥3,433, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the quarterly results. 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. There are some variant perceptions on KomeriLtd, with the most bullish analyst valuing it at JP¥4,100 and the most bearish at JP¥2,900 per share. 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 KomeriLtd's past performance and to peers in the same industry. The analysts are definitely expecting KomeriLtd's growth to accelerate, with the forecast 1.1% annualised growth to the end of 2026 ranking favourably alongside historical growth of 0.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.9% annually. So it's clear that despite the acceleration in growth, KomeriLtd is expected to grow meaningfully slower than the industry average.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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

You can also see whether KomeriLtd is carrying too much debt, and whether its balance sheet is healthy, for 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.