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4755: U S Listing Plans And Impairment Charge Will Shape Outlook

Credit Card IPO Plans And Improved Margins Will Drive Future Performance

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4755
AnalystConsensusTarget
Not Invested
Published 24 Nov 2024

Update shared on 08 Dec 2025

Fair value Increased 1.05%
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1Y
-3.9%
7D
0.7%

Analysts have modestly raised their price target on Rakuten Group from ¥1,007.50 to ¥1,018.13, citing slightly stronger expected revenue growth, improving profit margins, and a lower anticipated future P/E multiple that together support a marginally higher fair value.

What's in the News

  • Rakuten is exploring a potential U.S. IPO of its credit card business, alongside alternatives such as a partial stake sale to a strategic investor, following Mizuho’s earlier purchase of a 15% stake for about $1.1 billion (Reuters).
  • The board is scheduled to meet on October 29, 2025, to review proposed absorption type mergers. These mergers could reshape parts of the group’s corporate structure and internal integrations (company disclosure).
  • Rakuten expects to recognize an impairment loss of approximately JPY 27 billion in its consolidated IFRS results for the third quarter of fiscal 2025. This reflects write downs in certain assets (company disclosure).

Valuation Changes

  • Fair Value: Raised slightly from ¥1,007.50 to ¥1,018.13, reflecting a modest upward revision in the estimated intrinsic value.
  • Discount Rate: Held unchanged at 11.1%, indicating no shift in the assumed cost of capital or risk profile.
  • Revenue Growth: Increased slightly from 7.27% to about 7.52%, incorporating marginally stronger top line expectations.
  • Net Profit Margin: Revised up modestly from 3.19% to about 3.44%, pointing to incremental improvements in profitability assumptions.
  • Future P/E: Reduced moderately from 31.55x to about 29.38x, implying a somewhat lower valuation multiple applied to forward earnings.

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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.