Takashimaya Company, Limited (TSE:8233) Released Earnings Last Week And Analysts Lifted Their Price Target To JP¥2,788

It's been a pretty great week for Takashimaya Company, Limited (TSE:8233) shareholders, with its shares surging 12% to JP¥2,948 in the week since its latest first-quarter results. It was a credible result overall, with revenues of JP¥120b and statutory earnings per share of JP¥200 both in line with analyst estimates, showing that Takashimaya Company is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Takashimaya Company

Taking into account the latest results, the consensus forecast from Takashimaya Company's four analysts is for revenues of JP¥508.5b in 2025. This reflects a huge 28% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.8% to JP¥236. Before this earnings report, the analysts had been forecasting revenues of JP¥494.3b and earnings per share (EPS) of JP¥222 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.9% to JP¥2,788per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Takashimaya Company analyst has a price target of JP¥3,000 per share, while the most pessimistic values it at JP¥2,500. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Takashimaya Company's past performance and to peers in the same industry. For example, we noticed that Takashimaya Company's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 38% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.8% annually. So it looks like Takashimaya Company is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Takashimaya Company's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider 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 forecasts for Takashimaya Company going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Takashimaya Company's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.

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