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5938: Future Performance Will Balance Execution Risks And New Buy Ratings

5938: Upgraded Buy Rating Will Drive Renewed Share Price Momentum

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5938
AnalystConsensusTarget
Not Invested
Published 27 Dec 2024

Update shared on 27 Nov 2025

Fair value Decreased 1.11%
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AnalystConsensusTarget's Fair Value
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1Y
10.9%
7D
0.3%

Analysts have slightly lowered their fair value estimate for LIXIL to ¥1,980 from ¥2,002. This adjustment reflects updated growth assumptions and recent upward revisions in analyst recommendations, which support the company's positive outlook.

Analyst Commentary

Recent street research provides a nuanced view of LIXIL’s prospects, reflecting both optimism and lingering concerns among analysts as they update their perspectives on the company’s valuation and outlook.

Bullish Takeaways
  • Bullish analysts highlight the upgraded recommendation to Buy, citing share price upside potential as valuations are rolled forward.
  • Positive sentiment is driven by expectations of stronger earnings growth and operational improvements.
  • The higher price target suggests confidence in LIXIL’s execution of its strategy and its ability to capture market opportunities.
  • Updated guidance and revisions have reinforced views that management’s initiatives are yielding tangible progress.
Bearish Takeaways
  • Some analysts remain cautious about the sustainability of recent improvements given historic volatility in growth trends.
  • Concerns persist regarding competitive pressures and the need for continued innovation to maintain momentum.
  • Execution risks, particularly in achieving medium-term targets, remain a closely monitored factor.
  • Uncertainties in the broader market environment could challenge the pace of anticipated gains.

Valuation Changes

  • The Fair Value Estimate has decreased moderately to ¥1,980 from ¥2,002.
  • The Discount Rate has risen slightly from 9.83% to approximately 9.83%.
  • The Revenue Growth Projection has increased modestly from 2.74% to 2.77%.
  • The Net Profit Margin has fallen slightly from 2.01% to 1.96%.
  • The Future P/E Ratio has increased slightly to 23.60x from 23.21x.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.