Rorze Corporation (TSE:6323) Analysts Are Pretty Bullish On The Stock After Recent Results

Rorze Corporation (TSE:6323) shareholders are probably feeling a little disappointed, since its shares fell 6.2% to JP¥30,400 in the week after its latest quarterly results. Rorze reported in line with analyst predictions, delivering revenues of JP¥29b and statutory earnings per share of JP¥1,111, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rorze after the latest results.

Check out our latest analysis for Rorze

Taking into account the latest results, the most recent consensus for Rorze from four analysts is for revenues of JP¥124.6b in 2025. If met, it would imply a decent 18% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 4.7% to JP¥1,342 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥124.1b and earnings per share (EPS) of JP¥1,344 in 2025. 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.

The consensus price target rose 10% to JP¥36,333despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Rorze'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 Rorze at JP¥40,000 per share, while the most bearish prices it at JP¥30,000. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We can infer from the latest estimates that forecasts expect a continuation of Rorze'shistorical trends, as the 24% annualised revenue growth to the end of 2025 is roughly in line with the 24% annual growth 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 revenues grow 12% per year. So although Rorze is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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

It is also worth noting that we have found 1 warning sign for Rorze that you need to take into consideration.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com