Narrative Update on Japan Tobacco: Analyst Price Target Revision
Analysts have raised their price target for Japan Tobacco from ¥4,920 to ¥4,974. They cite modest improvements in projected revenue growth and a slightly lower discount rate as key factors in the adjustment.
What's in the News
- Board of Directors approved an absorption-type split contract with Shionogi to restructure business operations at the meeting held on September 25, 2025.
- The dividend for the second quarter of 2025 increased to JPY 104.00 per share from JPY 97.00, payable on September 1, with full-year guidance also raised.
- Revenue and profit forecasts for the 2025 fiscal year have been revised upward, with expected revenue increasing by 2.2%, operating profit by 10.1%, and basic earnings per share to JPY 278.25.
Valuation Changes
- Consensus Analyst Price Target has risen slightly from ¥4,920 to approximately ¥4,974.
- The discount rate has decreased modestly from 5.71% to 5.68%.
- Revenue growth expectations have increased marginally from 4.54% to 4.61%.
- Net profit margin has declined slightly from 17.18% to 17.14%.
- The future P/E ratio is up modestly from 15.85x to 16.01x.
Disclaimer
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