Ibiden Co.,Ltd. (TSE:4062) Released Earnings Last Week And Analysts Lifted Their Price Target To JP¥10,184

The investors in Ibiden Co.,Ltd.'s (TSE:4062) will be rubbing their hands together with glee today, after the share price leapt 39% to JP¥14,615 in the week following its interim results. It was a credible result overall, with revenues of JP¥195b and statutory earnings per share of JP¥66.90 both in line with analyst estimates, showing that IbidenLtd is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from IbidenLtd's 17 analysts is for revenues of JP¥416.8b in 2026. This would reflect a notable 8.7% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 15% to JP¥290. Before this earnings report, the analysts had been forecasting revenues of JP¥415.5b and earnings per share (EPS) of JP¥289 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 IbidenLtd

The consensus price target rose 14% to JP¥10,184despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of IbidenLtd's earnings by assigning a price premium. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on IbidenLtd, with the most bullish analyst valuing it at JP¥16,400 and the most bearish at JP¥4,800 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting IbidenLtd's growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that IbidenLtd is expected to grow much faster than its industry.

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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for IbidenLtd going out to 2028, 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 IbidenLtd 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.