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6098: Share Repurchases Will Drive Increased Earnings Power Ahead

Digitization And AI Will Redefine Global Talent Matching

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6098
AnalystHighTarget
Not Invested
Published 08 Jun 2025

Update shared on 14 Dec 2025

Fair value Decreased 1.67%
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AnalystHighTarget's Fair Value
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1Y
-22.1%
7D
6.6%

The analyst price target for Recruit Holdings has been revised slightly lower from ¥12,000 to ¥11,800, as analysts incorporate a higher discount rate and a more conservative future P/E multiple, partially offset by upgrades to long term revenue growth and profit margin assumptions.

What's in the News

  • The Board of Directors authorized a new share repurchase program of up to 38,000,000 shares (2.68% of shares outstanding) with a maximum allocation of ¥250,000 million, valid through April 30, 2026 (company announcement).
  • Recruit Holdings raised full year FY2026 guidance and now expects revenue of ¥3,598.5 billion, operating income of ¥566.0 billion, and profit attributable to owners of ¥448.3 billion, implying higher basic EPS of ¥313.00 (corporate guidance).
  • The company issued new earnings guidance for the second half of FY2026, targeting revenue of ¥1,805.0 billion, operating income of ¥252.5 billion, and profit attributable to owners of ¥200.0 billion, or basic EPS of ¥140.00 (corporate guidance).
  • Recruit Holdings announced a second quarter dividend increase to ¥12.50 per share, up from ¥12.00 a year earlier (dividend announcement).
  • Separate buyback authorizations include a program to repurchase up to 15,000,000 shares (1.05% of shares outstanding) for ¥130,000 million, with 9,849,000 shares already repurchased for ¥79,008.68 million under one tranche (buyback announcements and tranche update).

Valuation Changes

  • The consensus analyst price target has been reduced slightly from ¥12,000 to ¥11,800, reflecting a modest downward revision to fair value.
  • The discount rate has risen slightly from 4.86% to approximately 5.05%, implying a somewhat higher required return and a lower present value of future cash flows.
  • Revenue growth has been revised upward moderately from about 6.79% to 8.26%, indicating a more optimistic view of long term topline expansion.
  • The net profit margin has increased slightly from roughly 16.21% to 17.17%, incorporating expectations for better operating efficiency and profitability.
  • The future P/E has been cut moderately from 24.51x to 22.06x, signaling a more conservative valuation multiple applied to forward 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.