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6268: Earnings Mix Shift And Share Cancellation Will Support Steady Returns

Global Automation And Demographics Will Spur Advanced Manufacturing

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6268
AnalystHighTarget
Not Invested
Published 16 Jul 2025

Update shared on 12 Dec 2025

Fair value Increased 27%
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AnalystHighTarget's Fair Value
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1Y
43.0%
7D
1.4%

Analysts have raised their price target on Nabtesco from ¥3,451.74 to ¥4,400.00. This reflects expectations of higher future profitability supported by a modestly increased discount rate and a richer assumed valuation multiple, despite slightly lower revenue growth assumptions.

What's in the News

  • Nabtesco has scheduled a board meeting for November 28, 2025, to discuss a new management structure, officer changes, and the cancellation of treasury shares (company disclosure).
  • The company has completed a share buyback program announced on July 31, 2025, repurchasing a total of 2,999,400 shares, about 2.51% of shares outstanding, for approximately ¥9,999.82 million as of November 18, 2025 (company disclosure).
  • Nabtesco revised its consolidated earnings guidance for 2025 following the reclassification of its hydraulic equipment business as a discontinued operation, now expecting net sales of ¥300.7 billion, operating income of ¥20.8 billion, and net income attributable to owners of ¥14.9 billion (company disclosure).
  • The guidance revision stems from a company split of the hydraulic equipment business and a share purchase and shareholders agreement with Comer Industries S.p.A., aligning reported figures with IFRS 5 treatment of discontinued operations (company disclosure).

Valuation Changes

  • Fair Value: Raised from approximately ¥3,451.74 to ¥4,400.00, representing a meaningful upward revision to the intrinsic value estimate.
  • Discount Rate: Increased slightly from about 6.38% to 6.66%, suggesting a modestly higher required return on equity.
  • Revenue Growth: Reduced from roughly 5.64% to 4.27%, reflecting more conservative assumptions for top line expansion.
  • Net Profit Margin: Lifted moderately from around 6.03% to 6.51%, indicating expectations for improved profitability.
  • Future P/E: Raised from about 21.1x to 23.7x, signaling a richer assumed valuation multiple on forecast earnings.

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Disclaimer

AnalystHighTarget 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 AnalystHighTarget 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 AnalystHighTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.