Stock Analysis

The baudroie,inc. (TSE:4413) Analyst Just Boosted Their Forecasts By A Substantial Amount

TSE:4413
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Shareholders in baudroie,inc. (TSE:4413) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from baudroieinc's single analyst is for revenues of JP¥11b in 2025 which - if met - would reflect a sizeable 43% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 32% to JP¥98.90. Previously, the analyst had been modelling revenues of JP¥9.5b and earnings per share (EPS) of JP¥88.60 in 2025. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for baudroieinc

earnings-and-revenue-growth
TSE:4413 Earnings and Revenue Growth April 17th 2024

Although the analyst has upgraded their earnings estimates, there was no change to the consensus price target of JP¥4,200, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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 baudroieinc'shistorical trends, as the 43% annualised revenue growth to the end of 2025 is roughly in line with the 40% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.1% annually. So it's pretty clear that baudroieinc is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So baudroieinc could be a good candidate for more research.

The covering analyst is definitely bullish on baudroieinc, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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

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.

About TSE:4413

baudroieinc

Provides optimal IT solutions in Japan.

High growth potential with excellent balance sheet.

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