Need To Know: The Consensus Just Cut Its eREX Co.,Ltd. (TSE:9517) Estimates For 2025

The latest analyst coverage could presage a bad day for eREX Co.,Ltd. (TSE:9517), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the latest downgrade, the current consensus, from the dual analysts covering eREXLtd, is for revenues of JP¥149b in 2025, which would reflect a disturbing 33% reduction in eREXLtd's sales over the past 12 months. Before the latest update, the analysts were foreseeing JP¥173b of revenue in 2025. It looks like forecasts have become a fair bit less optimistic on eREXLtd, given the measurable cut to revenue estimates.

See our latest analysis for eREXLtd

Notably, the analysts have cut their price target 6.5% to JP¥763, suggesting concerns around eREXLtd's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 41% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 26% 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 10% per year. It's pretty clear that eREXLtd's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of eREXLtd's future valuation. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on eREXLtd after today.

Of course, this isn't the full story. At least one of eREXLtd's dual analysts has provided estimates out to 2027, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.