SENKO Group Holdings Co., Ltd. (TSE:9069) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a good week for SENKO Group Holdings Co., Ltd. (TSE:9069) shareholders, because the company has just released its latest half-yearly results, and the shares gained 5.7% to JP¥1,512. Results were roughly in line with estimates, with revenues of JP¥414b and statutory earnings per share of JP¥69.90. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for SENKO Group Holdings

After the latest results, the seven analysts covering SENKO Group Holdings are now predicting revenues of JP¥858.4b in 2025. If met, this would reflect a credible 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 9.8% to JP¥129. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥849.5b and earnings per share (EPS) of JP¥129 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 9.4% to JP¥1,506despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of SENKO Group Holdings' earnings by assigning a price premium. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values SENKO Group Holdings at JP¥1,800 per share, while the most bearish prices it at JP¥1,200. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that SENKO Group Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 8.4% p.a. 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 3.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that SENKO Group Holdings 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. Happily, there were no major changes to revenue forecasts, with the business still 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 in mind, we wouldn't be too quick to come to a conclusion on SENKO Group Holdings. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple SENKO Group Holdings analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that SENKO Group Holdings is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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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.