One Valtes Holdings Co.,Ltd. (TSE:4442) Analyst Is Reducing Their Forecasts For Next Year

The latest analyst coverage could presage a bad day for Valtes Holdings Co.,Ltd. (TSE:4442), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After this downgrade, Valtes HoldingsLtd's single analyst is now forecasting revenues of JP¥12b in 2025. This would be a decent 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 93% to JP¥37.00. Prior to this update, the analyst had been forecasting revenues of JP¥13b and earnings per share (EPS) of JP¥51.30 in 2025. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Valtes HoldingsLtd

The consensus price target fell 31% to JP¥900, with the weaker earnings outlook clearly leading analyst valuation estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Valtes HoldingsLtd's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.5% annually. Even after the forecast slowdown in growth, it seems obvious that Valtes HoldingsLtd is also expected to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Valtes HoldingsLtd. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Valtes HoldingsLtd.

There might be good reason for analyst bearishness towards Valtes HoldingsLtd, like its declining profit margins. Learn more, and discover the 2 other concerns we've identified, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks 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.