Analysts have trimmed their 12 month price target for Nidec from ¥3,800 to ¥3,700, citing slightly lower profit margin assumptions and a higher future P/E estimate as key drivers of the revision.
What's in the News
- Nidec scheduled a board meeting for March 13, 2026 to establish an Executive Responsibility Investigation Committee, focusing on accountability following recent findings from an external review (Key Developments).
- The company held a board meeting on March 3, 2026 to consider a resolution not to pay a year end dividend from surplus with a record date of March 31, 2026 (Key Developments).
- Nidec resolved not to pay a dividend from surplus with record date March 31, 2026, compared with a ¥20 per share dividend for the fiscal year ended March 2025, citing an ongoing investigation into inappropriate accounting treatment that may have a material impact on prior fiscal years and current financial results (Key Developments).
- The company referenced an "Announcement Regarding the Disclosure of the Third Party Committee's Investigation Report and their Company's Response," noting that the committee's February 27, 2026 report included findings, cause analysis, and recommendations related to accounting issues, and that the continuing investigation influenced the decision to forgo the year end dividend (Key Developments).
- Nidec plans a press conference classified as an Analyst/Investor Day, signaling further communication with the market around these governance and accounting topics (Key Developments).
Valuation Changes
- Fair Value: Trimmed from ¥3,800 to ¥3,700, a reduction of about 2.6% in the 12 month target level used in the model.
- Discount Rate: Adjusted from 8.49% to 8.03%, indicating a slightly lower required return in the updated assumptions.
- Revenue Growth: Held effectively steady, from 6.27% to 6.27%, with only a very small numerical change in the long term growth input.
- Net Profit Margin: Reduced from 10.10% to 8.73%, reflecting more cautious profitability assumptions in the forecast period.
- Future P/E: Raised from 17.54x to 19.51x, implying a higher valuation multiple being applied to projected earnings.
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