Update shared on 01 Nov 2025
Fair value Increased 1.50%Narrative Update on Renesas Electronics Price Target
Analysts have raised their price target for Renesas Electronics from ¥2,381 to ¥2,417, citing improved outlooks on revenue growth and profit margins as key factors behind the upgrade.
What's in the News
- Renesas Electronics is exploring the sale of its timing division and is working with bankers at JPMorgan. The deal could value the unit at close to $2 billion, with Texas Instruments and Infineon among the possible buyers (Reuters).
- The company introduced the RA8M2 and RA8D2 microcontroller groups, which deliver high compute performance and advanced graphics capabilities for industrial and AI applications.
- Renesas announced new magnet-free inductive position sensor ICs, providing customizable, high-precision sensing solutions for industrial, robotics, healthcare, and automotive sectors.
- Renesas launched new high-performance buck controllers for USB-C battery charging and power conversion, supporting efficient, compact power management in portable and industrial devices.
Valuation Changes
- Fair Value: Increased from ¥2,381 to ¥2,417, reflecting a slightly higher company valuation.
- Discount Rate: Increased slightly from 10.09% to 10.12%.
- Revenue Growth: Improved from 8.27% to 9.17%, indicating an upward revision in expected sales expansion.
- Net Profit Margin: Rose from 17.30% to 17.84%, pointing to anticipated gains in profitability.
- Future P/E: Declined modestly from 21.16x to 20.64x, suggesting a more attractive valuation compared to future earnings.
Disclaimer
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