Update shared on 17 Dec 2025
Analysts have nudged their price target on Renesas Electronics slightly higher, now implying fair value broadly in line with prior estimates but supported by a marginally lower discount rate and sustained expectations for high single digit revenue growth and resilient profit margins, which together indicate a premium future P/E in the low 20s.
What's in the News
- Renesas is exploring a sale of its timing division, with potential bidders including Texas Instruments and Infineon, in a deal that could value the unit near $2 billion (Reuters)
- SiTime is in talks to acquire Renesas timing unit in a transaction that could reach up to $2 billion including debt, though negotiations remain uncertain and non binding (Key Developments)
- Renesas launched its first Wi Fi 6 MCUs, the RA6W1 and RA6W2, targeting ultra low power connected IoT devices with integrated security and long term product support (Key Developments)
- The company introduced a sixth generation DDR5 Registered Clock Driver that pushes data rates to 9600 MT per second to support next generation AI and data center servers (Key Developments)
- Renesas unveiled new RA8M2 and RA8D2 microcontrollers based on 1 GHz Arm Cortex M85 cores, aimed at compute intensive, graphics rich and ML enabled embedded applications (Key Developments)
Valuation Changes
- Fair Value remained unchanged at approximately ¥2,417 per share, indicating no material revision to the intrinsic value estimate.
- The Discount Rate fell slightly from about 10.48 percent to 10.33 percent, reflecting a modest easing in perceived risk or cost of capital.
- Revenue Growth was effectively unchanged at around 9.58 percent annually, maintaining expectations for high single digit top line expansion.
- The Net Profit Margin stayed stable at roughly 16.90 percent, suggesting no shift in the medium term profitability outlook.
- The Future P/E edged down slightly from about 21.65x to 21.57x, leaving the valuation multiple broadly in line with prior assumptions.
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