Analysts Have Been Trimming Their Enplas Corporation (TSE:6961) Price Target After Its Latest Report

One of the biggest stories of last week was how Enplas Corporation (TSE:6961) shares plunged 20% in the week since its latest quarterly results, closing yesterday at JP¥4,255. Enplas reported in line with analyst predictions, delivering revenues of JP¥20b and statutory earnings per share of JP¥390, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Enplas

Taking into account the latest results, the most recent consensus for Enplas from two analysts is for revenues of JP¥42.3b in 2026. If met, it would imply a decent 9.3% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 12% to JP¥513. Before this earnings report, the analysts had been forecasting revenues of JP¥44.0b and earnings per share (EPS) of JP¥632 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The consensus price target fell 22% to JP¥7,000, with the weaker earnings outlook clearly leading valuation estimates.

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 period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 7.4% growth on an annualised basis. That is in line with its 7.0% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.2% per year. It's clear that while Enplas' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Enplas' future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Enplas going out as far as 2027, and you can see them free on our platform here.

Even so, be aware that Enplas is showing 1 warning sign in our investment analysis , 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.