JP¥4,400: That's What Analysts Think Eternal Hospitality Group Co.,Ltd. (TSE:3193) Is Worth After Its Latest Results

Investors in Eternal Hospitality Group Co.,Ltd. (TSE:3193) had a good week, as its shares rose 5.5% to close at JP¥3,450 following the release of its first-quarter results. Results were roughly in line with estimates, with revenues of JP¥13b and statutory earnings per share of JP¥149. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Eternal Hospitality GroupLtd's dual analysts are now forecasting revenues of JP¥52.9b in 2026. This would be a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to reduce 4.5% to JP¥170 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥52.7b and earnings per share (EPS) of JP¥164 in 2026. So the consensus seems to have become somewhat more optimistic on Eternal Hospitality GroupLtd's earnings potential following these results.

View our latest analysis for Eternal Hospitality GroupLtd

The consensus price target fell 23% to JP¥4,400, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns.

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 Eternal Hospitality GroupLtd's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2026 being well below the historical 19% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.4% annually. So it's pretty clear that, while Eternal Hospitality GroupLtd's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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 Eternal Hospitality GroupLtd following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Eternal Hospitality GroupLtd's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

We also provide an overview of the Eternal Hospitality GroupLtd Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.