Analysts Have Been Trimming Their COSMOS Pharmaceutical Corporation (TSE:3349) Price Target After Its Latest Report
Shareholders might have noticed that COSMOS Pharmaceutical Corporation (TSE:3349) filed its annual result this time last week. The early response was not positive, with shares down 5.7% to JP¥6,240 in the past week. Results were roughly in line with estimates, with revenues of JP¥1.1t and statutory earnings per share of JP¥404. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, COSMOS Pharmaceutical's ten analysts are now forecasting revenues of JP¥1.19t in 2027. This would be a decent 8.2% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be JP¥407, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of JP¥1.18t and earnings per share (EPS) of JP¥418 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
See our latest analysis for COSMOS Pharmaceutical
It might be a surprise to learn that the consensus price target fell 5.1% to JP¥7,571, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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. The most optimistic COSMOS Pharmaceutical analyst has a price target of JP¥9,600 per share, while the most pessimistic values it at JP¥6,500. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of COSMOS Pharmaceutical'shistorical trends, as the 8.2% annualised revenue growth to the end of 2027 is roughly in line with the 9.1% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.7% per year. So it's pretty clear that COSMOS Pharmaceutical is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for COSMOS Pharmaceutical. 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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of COSMOS Pharmaceutical's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple COSMOS Pharmaceutical analysts - going out to 2029, and you can see them free on our platform here.
It might also be worth considering whether COSMOS Pharmaceutical's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.