Analysts Are Betting On SCSK Corporation (TSE:9719) With A Big Upgrade This Week

SCSK Corporation (TSE:9719) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 5.3% to JP¥3,763 over the past 7 days. Could this big upgrade push the stock even higher?

Following the upgrade, the latest consensus from SCSK's eleven analysts is for revenues of JP¥703b in 2026, which would reflect a sizeable 37% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 31% to JP¥176. Before this latest update, the analysts had been forecasting revenues of JP¥632b and earnings per share (EPS) of JP¥168 in 2026. The forecasts seem more optimistic now, with a nice gain to revenue and a modest lift to earnings per share estimates.

See our latest analysis for SCSK

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.7% to JP¥3,685 per share.

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. The analysts are definitely expecting SCSK's growth to accelerate, with the forecast 28% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SCSK is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at SCSK.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SCSK analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the SCSK Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.