One Valtes Holdings Co.,Ltd. (TSE:4442) Analyst Just Made A Major Cut To Next Year's Estimates

One thing we could say about the covering analyst on Valtes Holdings Co.,Ltd. (TSE:4442) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the most recent consensus for Valtes HoldingsLtd from its single analyst is for revenues of JP¥11b in 2026 which, if met, would be an okay 6.0% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to decrease 7.6% to JP¥25.90 in the same period. Prior to this update, the analyst had been forecasting revenues of JP¥13b and earnings per share (EPS) of JP¥39.80 in 2026. Indeed, we can see that the analyst is a lot more bearish about Valtes HoldingsLtd's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Valtes HoldingsLtd

It'll come as no surprise then, to learn that the analyst has cut their price target 32% to JP¥580.

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 4.8% annualised growth rate until the end of 2026 being well below the historical 19% p.a. growth over the last five years. Compare this to the 218 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.6% per year. Factoring in the forecast slowdown in growth, it looks like Valtes HoldingsLtd is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Lamentably, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the market itself. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for 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 backed by insiders.

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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.