Brokers Are Upgrading Their Views On Hokuhoku Financial Group, Inc. (TSE:8377) With These New Forecasts
Hokuhoku Financial Group, Inc. (TSE:8377) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
After this upgrade, Hokuhoku Financial Group's two analysts are now forecasting revenues of JP¥359b in 2027. This would be a substantial 55% improvement in sales compared to the last 12 months. Per-share earnings are expected to swell 15% to JP¥570. Prior to this update, the analysts had been forecasting revenues of JP¥271b and earnings per share (EPS) of JP¥498 in 2027. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
See our latest analysis for Hokuhoku Financial Group
It will come as no surprise to learn that the analysts have increased their price target for Hokuhoku Financial Group 19% to JP¥7,150 on the back of these upgrades.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Hokuhoku Financial Group's rate of growth is expected to accelerate meaningfully, with the forecast 55% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 6.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hokuhoku Financial Group to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Hokuhoku Financial Group could be worth investigating further.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Hokuhoku Financial Group going out as far as 2029, and you can see them free on our platform 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.