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

Shareholders will be ecstatic, with their stake up 23% over the past week following Enplas Corporation's (TSE:6961) latest quarterly results. Revenues came in 2.2% below expectations, at JP¥9.0b. Statutory earnings per share were relatively better off, with a per-share profit of JP¥446 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Enplas from two analysts is for revenues of JP¥38.5b in 2026. If met, it would imply a modest 5.6% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 2.3% to JP¥323. In the lead-up to this report, the analysts had been modelling revenues of JP¥38.3b and earnings per share (EPS) of JP¥277 in 2026. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Enplas

The consensus price target fell 33% to JP¥6,000, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Enplas' past performance and to peers in the same industry. The analysts are definitely expecting Enplas' growth to accelerate, with the forecast 7.5% annualised growth to the end of 2026 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Enplas is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Enplas following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Even so, be aware that Enplas is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

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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.