MITSUI-SOKO HOLDINGS Co., Ltd. (TSE:9302) Just Reported And Analysts Have Been Lifting Their Price Targets

MITSUI-SOKO HOLDINGS Co., Ltd. (TSE:9302) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. MITSUI-SOKO HOLDINGS reported in line with analyst predictions, delivering revenues of JP¥73b and statutory earnings per share of JP¥486, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for MITSUI-SOKO HOLDINGS

Taking into account the latest results, the current consensus from MITSUI-SOKO HOLDINGS' four analysts is for revenues of JP¥291.9b in 2026. This would reflect a reasonable 6.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 5.1% to JP¥467. Before this earnings report, the analysts had been forecasting revenues of JP¥286.2b and earnings per share (EPS) of JP¥454 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 13% to JP¥7,050, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. Currently, the most bullish analyst values MITSUI-SOKO HOLDINGS at JP¥8,000 per share, while the most bearish prices it at JP¥5,900. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting MITSUI-SOKO HOLDINGS is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting MITSUI-SOKO HOLDINGS' growth to accelerate, with the forecast 4.8% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.2% annually. MITSUI-SOKO HOLDINGS is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around MITSUI-SOKO HOLDINGS' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple MITSUI-SOKO HOLDINGS analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for MITSUI-SOKO HOLDINGS that you need to take into consideration.

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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.