Update shared on05 Sep 2025
Analysts maintain a positive outlook on Recruit Holdings, citing undervalued value-added services, strengthening monetization, and improved profitability, with the consensus price target unchanged at ¥9868.
Analyst Commentary
- Bullish analysts see market underappreciation of Recruit Holdings' emphasis on value-added services.
- Recognition of enhanced monetization initiatives supporting revenue growth.
- Expectation of improved profitability through new service offerings.
- Belief in ongoing operational efficiency driving long-term margins.
- Increased confidence in management's strategic execution.
What's in the News
- Recruit Holdings completed a buyback of 2,717,000 shares (0.19%) for ¥23,102.65 million, finalizing a tranche announced August 8, 2025.
- The Board authorized a new share repurchase program for up to 5,000,000 shares (0.35%) for ¥45,000 million, valid through August 12, 2025, to enhance shareholder returns and support strategic initiatives.
- The HR Technology segment reduced approximately 1,300 employees (6% of the segment), with the financial impact already reflected in guidance for the fiscal year ending March 31, 2026.
- The Board approved the issuance of stock options to Directors (excluding independents) and Senior Vice Presidents.
- Recruit Holdings completed a previous buyback, repurchasing 55,612,500 shares (3.78%) for ¥449,999.29 million as of June 16, 2025.
Valuation Changes
Summary of Valuation Changes for Recruit Holdings
- The Consensus Analyst Price Target remained effectively unchanged, at ¥9868.
- The Future P/E for Recruit Holdings remained effectively unchanged, moving only marginally from 24.71x to 24.75x.
- The Discount Rate for Recruit Holdings remained effectively unchanged, at 4.96%.
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.