Komeri Co.,Ltd. (TSE:8218) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Komeri Co.,Ltd. (TSE:8218) had a good week, as its shares rose 2.8% to close at JP¥3,100 following the release of its first-quarter results. It was a credible result overall, with revenues of JP¥109b and statutory earnings per share of JP¥289 both in line with analyst estimates, showing that KomeriLtd is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from KomeriLtd's three analysts is for revenues of JP¥384.4b in 2026. This would reflect a satisfactory 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 6.2% to JP¥314. Before this earnings report, the analysts had been forecasting revenues of JP¥384.5b and earnings per share (EPS) of JP¥310 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for KomeriLtd

The consensus price target rose 5.0% to JP¥3,500despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of KomeriLtd's earnings by assigning a price premium. 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 KomeriLtd at JP¥4,000 per share, while the most bearish prices it at JP¥3,000. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting KomeriLtd is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that KomeriLtd's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.5% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.06% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.4% per year. So it looks like KomeriLtd is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 KomeriLtd analysts - going out to 2028, and you can see them free on our platform here.

You can also view our analysis of KomeriLtd's balance sheet, and whether we think KomeriLtd is carrying too much debt, 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.