Analysts Have Lowered Expectations For Cosel Co., Ltd. (TSE:6905) After Its Latest Results

Shareholders might have noticed that Cosel Co., Ltd. (TSE:6905) filed its interim result this time last week. The early response was not positive, with shares down 7.3% to JP¥1,098 in the past week. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Cosel from twin analysts is for revenues of JP¥24.0b in 2026. If met, it would imply a satisfactory 2.9% increase on its revenue over the past 12 months. Earnings are expected to improve, with Cosel forecast to report a statutory profit of JP¥0.70 per share. In the lead-up to this report, the analysts had been modelling revenues of JP¥26.8b and earnings per share (EPS) of JP¥23.23 in 2026. Indeed, we can see that the analysts are a lot more bearish about Cosel's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Cosel

The average price target climbed 9.1% to JP¥1,200despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

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 analysts are definitely expecting Cosel's growth to accelerate, with the forecast 5.8% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cosel is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cosel. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Cosel. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Cosel that you should be aware of.

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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.