SHIFT Inc. (TSE:3697) Analysts Are Pretty Bullish On The Stock After Recent Results

Investors in SHIFT Inc. (TSE:3697) had a good week, as its shares rose 6.8% to close at JP¥1,159 following the release of its interim results. Revenues came in 3.6% below expectations, at JP¥32b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥19.43 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the eight analysts covering SHIFT are now predicting revenues of JP¥133.6b in 2025. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 38% to JP¥34.89. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥133.8b and earnings per share (EPS) of JP¥34.22 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.

View our latest analysis for SHIFT

The consensus price target rose 12% to JP¥1,310despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of SHIFT'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. The most optimistic SHIFT analyst has a price target of JP¥1,500 per share, while the most pessimistic values it at JP¥1,000. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 24% growth on an annualised basis. That is in line with its 30% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.0% annually. So it's pretty clear that SHIFT is forecast to grow substantially faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for SHIFT going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with SHIFT .

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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.