Update shared on 05 Dec 2025
Fair value Decreased 1.39%Analysts have modestly trimmed their price target on Terumo by approximately ¥44 to reflect slightly lower projected profit margins, partially offset by a small uptick in expected revenue growth and a marginally reduced discount rate.
What's in the News
- Revised full year 2026 guidance now assumes higher revenue of JPY 1,108,000 million but lower operating profit of JPY 181,500 million and EPS of JPY 92.20. This reflects FX assumption changes, acquisition costs and one time portfolio review expenses (Corporate guidance).
- Second quarter 2026 dividend raised to JPY 15.00 per share from JPY 13.00, with full year dividend guidance also at JPY 15.00 per share. This signals continued shareholder returns despite lower profit guidance (Dividend announcement).
- Terumo Interventional Systems secured FDA 510(k) clearance for its OPUSWAVE Dual Sensor Imaging System and DualView imaging catheter. The system combines OFDI and IVUS to provide simultaneous coronary imaging views in the US market (Product related announcement).
- The Blood Center in New Orleans became the second US blood center to deploy Terumo BCT’s Reveos Automated Blood Processing System and Nokia Software Platform. The deployment aims to help alleviate platelet shortages and improve processing efficiency (Client announcement).
- A board meeting is scheduled for September 11, 2025 to consider reasons for an amendment, indicating potential changes to corporate or governance arrangements (Board meeting).
Valuation Changes
- Fair Value Estimate edged down modestly from approximately ¥3,181 to ¥3,136 per share, reflecting slightly lower projected profitability.
- Discount Rate decreased marginally from about 5.75 percent to 5.72 percent, implying a slightly lower required return on equity.
- Revenue Growth rose slightly from around 6.24 percent to 6.30 percent, indicating a small uplift in long term top line expectations.
- Net Profit Margin slipped slightly from roughly 14.67 percent to 14.59 percent, incorporating more conservative margin assumptions.
- Future P/E eased modestly from about 29.70x to 29.37x, suggesting a small contraction in the valuation multiple applied to forward earnings.
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