Amano Corporation (TSE:6436) Just Reported And Analysts Have Been Lifting Their Price Targets

As you might know, Amano Corporation (TSE:6436) recently reported its interim numbers. It was a workmanlike result, with revenues of JP¥84b coming in 2.6% ahead of expectations, and statutory earnings per share of JP¥182, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Amano after the latest results.

View our latest analysis for Amano

Following the latest results, Amano's dual analysts are now forecasting revenues of JP¥171.9b in 2025. This would be a credible 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 12% to JP¥231. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥168.9b and earnings per share (EPS) of JP¥224 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 32% to JP¥4,500.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Amano's growth to accelerate, with the forecast 6.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 7.3% annually. So it's clear that despite the acceleration in growth, Amano is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Amano's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Amano that you need to be mindful of.

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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.