Disco Corporation (TSE:6146) Analysts Are Pretty Bullish On The Stock After Recent Results

As you might know, Disco Corporation (TSE:6146) just kicked off its latest annual results with some very strong numbers. The company beat expectations with revenues of JP¥437b arriving 2.4% ahead of forecasts. Statutory earnings per share (EPS) were JP¥1,250, 3.5% ahead of estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. After the latest results, the 19 analysts covering Disco are now predicting revenues of JP¥525.2b in 2027. If met, this would reflect a substantial 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 32% to JP¥1,648. In the lead-up to this report, the analysts had been modelling revenues of JP¥517.2b and earnings per share (EPS) of JP¥1,587 in 2027. So the consensus seems to have become somewhat more optimistic on Disco's earnings potential following these results. Check out our latest analysis for Disco The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.4% to JP¥76,345. 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 Disco, with the most bullish analyst valuing it at JP¥100,000 and the most bearish at JP¥48,000 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. 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. It's clear from the latest estimates that Disco's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Disco is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors. The Bottom Line The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Disco's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Disco going out to 2029, and you can see them free on our platform here.. Plus, you should also learn about the 1 warning sign we've spotted with Disco .