Upgrade: Analysts Just Made A Meaningful Increase To Their Rorze Corporation (TSE:6323) Forecasts

Shareholders in Rorze Corporation (TSE:6323) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Rorze has also found favour with investors, with the stock up a majestic 31% to JP¥28,520 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the latest consensus from Rorze's five analysts is for revenues of JP¥123b in 2025, which would reflect a huge 32% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 21% to JP¥1,344. Prior to this update, the analysts had been forecasting revenues of JP¥102b and earnings per share (EPS) of JP¥1,111 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Rorze

With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to JP¥21,650 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Rorze's past performance and to peers in the same industry. It's clear from the latest estimates that Rorze's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 24% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Rorze to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Rorze could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Rorze going out to 2027, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.