Upgrade: Analysts Just Made A Notable Increase To Their Tsubakimoto Chain Co. (TSE:6371) Forecasts

Shareholders in Tsubakimoto Chain Co. (TSE:6371) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

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After this upgrade, Tsubakimoto Chain's sole analyst is now forecasting revenues of JP¥359b in 2027. This would be a meaningful 14% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to drop 16% to JP¥245 in the same period. Before this latest update, the analyst had been forecasting revenues of JP¥293b and earnings per share (EPS) of JP¥194 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.

Check out our latest analysis for Tsubakimoto Chain

With these upgrades, we're not surprised to see that the analyst has lifted their price target 38% to JP¥2,900 per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting Tsubakimoto Chain's growth to accelerate, with the forecast 19% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Tsubakimoto Chain is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Tsubakimoto Chain 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 Tsubakimoto Chain going out as far as 2029, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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