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

It's been a mediocre week for SHIFT Inc. (TSE:3697) shareholders, with the stock dropping 13% to JP¥1,498 in the week since its latest quarterly results. SHIFT reported in line with analyst predictions, delivering revenues of JP¥34b and statutory earnings per share of JP¥19.43, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SHIFT after the latest results.

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Following the latest results, SHIFT's seven analysts are now forecasting revenues of JP¥157.4b in 2026. This would be a huge 26% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 52% to JP¥46.70. Before this earnings report, the analysts had been forecasting revenues of JP¥157.7b and earnings per share (EPS) of JP¥46.87 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.

Check out our latest analysis for SHIFT

The consensus price target rose 6.2% to JP¥1,710despite 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. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values SHIFT at JP¥2,000 per share, while the most bearish prices it at JP¥1,250. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's pretty clear that there is an expectation that SHIFT's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 20% growth on an annualised basis. This is compared to a historical growth rate of 28% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.5% per year. So it's pretty clear that, while SHIFT's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. 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 estimates - from multiple SHIFT analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for SHIFT you should know about.

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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.