Update shared on 06 Nov 2025
Fair value Increased 4.58%Analysts have raised their price target for Nabtesco from ¥3,374 to ¥3,528, citing an improved profit margin outlook, which offsets slower revenue growth.
What's in the News
- Nabtesco revised its consolidated earnings guidance for the year ending December 31, 2025. The revision reflects the company split of its hydraulic equipment business and the transfer of subsidiary shares, resulting in adjusted financial forecasts (Key Developments).
- For 2025, the company forecasts net sales of JPY 300,700 million, operating income of JPY 20,800 million, and net income attributable to owners of the parent of JPY 14,900 million. These figures are presented in line with the new classification of discontinued operations (Key Developments).
- Nabtesco completed a share buyback between July 31, 2025, and September 30, 2025. The company repurchased 1,796,100 shares, representing 1.49% of its outstanding shares for approximately ¥5,638.62 million (Key Developments).
Valuation Changes
- Fair Value: Increased slightly from ¥3,374 to ¥3,528.
- Discount Rate: Rose moderately from 6.47% to 6.70%.
- Revenue Growth: Decreased significantly from 1.33% to 0.24%.
- Profit Margin: Improved modestly from 5.97% to 6.20%.
- Future P/E: Declined from 23.38x to 22.52x, indicating a lower expected valuation relative to future earnings.
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