SAKURA Internet Inc. (TSE:3778) Analysts Are Pretty Bullish On The Stock After Recent Results
As you might know, SAKURA Internet Inc. (TSE:3778) recently reported its quarterly numbers. Results look mixed - while revenue fell marginally short of analyst estimates at JP¥11b, statutory earnings beat expectations 4.0%, with SAKURA Internet reporting profits of JP¥21.38 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, SAKURA Internet's three analysts are now forecasting revenues of JP¥46.8b in 2027. This would be a major 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 180% to JP¥97.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of JP¥46.9b and earnings per share (EPS) of JP¥48.17 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
See our latest analysis for SAKURA Internet
The consensus price target rose 13% to JP¥5,473, 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. There are some variant perceptions on SAKURA Internet, with the most bullish analyst valuing it at JP¥6,870 and the most bearish at JP¥4,076 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting SAKURA Internet's growth to accelerate, with the forecast 28% annualised growth to the end of 2027 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SAKURA Internet is expected to grow much 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 SAKURA Internet 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. 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.
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. At Simply Wall St, we have a full range of analyst estimates for SAKURA Internet going out to 2029, and you can see them free on our platform here..
Even so, be aware that SAKURA Internet is showing 3 warning signs in our investment analysis , you should know about...
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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.