Nippon Yusen Kabushiki Kaisha (TSE:9101) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Nippon Yusen Kabushiki Kaisha (TSE:9101) shareholders, because the company has just released its latest yearly results, and the shares gained 8.5% to JP¥4,648. Nippon Yusen Kabushiki Kaisha reported in line with analyst predictions, delivering revenues of JP¥2.4t and statutory earnings per share of JP¥468, suggesting the business is executing well and in line with its plan. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Nippon Yusen Kabushiki Kaisha

Following the recent earnings report, the consensus from seven analysts covering Nippon Yusen Kabushiki Kaisha is for revenues of JP¥2.29t in 2025. This implies a measurable 4.1% decline in revenue compared to the last 12 months. Per-share earnings are expected to increase 7.2% to JP¥534. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥2.20t and earnings per share (EPS) of JP¥515 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.9% to JP¥4,233per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Nippon Yusen Kabushiki Kaisha, with the most bullish analyst valuing it at JP¥6,500 and the most bearish at JP¥2,300 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 4.1% annualised decline to the end of 2025. That is a notable change from historical growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Nippon Yusen Kabushiki Kaisha is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Nippon Yusen Kabushiki Kaisha's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Nippon Yusen Kabushiki Kaisha going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Nippon Yusen Kabushiki Kaisha has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.