Nissin Foods Company Limited (HKG:1475) Just Reported And Analysts Have Been Lifting Their Price Targets
The analysts might have been a bit too bullish on Nissin Foods Company Limited (HKG:1475), given that the company fell short of expectations when it released its full-year results last week. Nissin Foods missed analyst forecasts, with revenues of HK$4.0b and statutory earnings per share (EPS) of HK$0.32, falling short by 5.1% and 4.5% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the twin analysts covering Nissin Foods are now predicting revenues of HK$4.26b in 2026. If met, this would reflect a satisfactory 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.3% to HK$0.33. Before this earnings report, the analysts had been forecasting revenues of HK$4.37b and earnings per share (EPS) of HK$0.36 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
See our latest analysis for Nissin Foods
What's most unexpected is that the consensus price target rose 8.9% to HK$7.38, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.
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 Nissin Foods' rate of growth is expected to accelerate meaningfully, with the forecast 6.5% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.2% p.a. 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 5.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Nissin Foods is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Nissin Foods' revenue estimates, but industry data suggests that it is expected to grow faster than 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 Nissin Foods. 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.
You can also see our analysis of Nissin Foods' Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.