News Flash: Analysts Just Made A Substantial Upgrade To Their Seibu Holdings Inc. (TSE:9024) Forecasts

Seibu Holdings Inc. (TSE:9024) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investor sentiment seems to be improving too, with the share price up 4.9% to JP¥3,199 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the five analysts covering Seibu Holdings are now predicting revenues of JP¥882b in 2025. If met, this would reflect a huge 80% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 169% to JP¥747. Before this latest update, the analysts had been forecasting revenues of JP¥760b and earnings per share (EPS) of JP¥587 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Seibu Holdings

It will come as no surprise to learn that the analysts have increased their price target for Seibu Holdings 20% to JP¥2,946 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Seibu Holdings' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Seibu Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 223% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.3% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.9% per year. So it looks like Seibu Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this 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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Seibu Holdings.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Seibu Holdings analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.