Sumitomo Rubber Industries, Ltd. (TSE:5110) Analysts Are Pretty Bullish On The Stock After Recent Results

As you might know, Sumitomo Rubber Industries, Ltd. (TSE:5110) recently reported its yearly numbers. Sumitomo Rubber Industries reported JP¥1.2t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of JP¥192 beat expectations, being 3.0% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sumitomo Rubber Industries after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following the latest results, Sumitomo Rubber Industries' twelve analysts are now forecasting revenues of JP¥1.28t in 2026. This would be a modest 6.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 36% to JP¥260. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥1.26t and earnings per share (EPS) of JP¥255 in 2026. 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.

View our latest analysis for Sumitomo Rubber Industries

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.3% to JP¥2,757per 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 Sumitomo Rubber Industries, with the most bullish analyst valuing it at JP¥3,150 and the most bearish at JP¥1,900 per share. 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.

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 can infer from the latest estimates that forecasts expect a continuation of Sumitomo Rubber Industries'historical trends, as the 6.4% annualised revenue growth to the end of 2026 is roughly in line with the 7.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.0% per year. So it's pretty clear that Sumitomo Rubber Industries is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sumitomo Rubber Industries following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Sumitomo Rubber Industries going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Sumitomo Rubber Industries that you should be aware of.

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.