Update shared on 02 Nov 2025
Fair value Increased 13%Analysts have raised their price target for Advantest from ¥12,873 to ¥14,609. They cite expectations for stronger revenue growth and improving profit margins.
What's in the News
- Advantest announced the MTe power test platform, designed to meet the testing needs of the fast-growing power semiconductor market by offering modular hardware, system scalability, and advanced digital control. The platform is now available worldwide, and early customer evaluations confirm significant productivity gains. (Product-Related Announcements)
- The company revised its consolidated earnings guidance for the year ending March 31, 2026. It now projects net sales of JPY 950,000 million and operating income of JPY 374,000 million, which represents a significant increase from previous forecasts. (Corporate Guidance: Raised)
- The Board of Directors authorized a share repurchase program of up to 18 million shares for ¥150,000 million. This aims to enhance shareholder returns and capital efficiency. (Buyback Transaction Announcements)
- Advantest increased interim dividends to JPY 29 per share, up from JPY 19 per share the previous year. The effective date is December 1, 2025. (Dividend Increases)
- The company completed the repurchase of 6,643,900 shares, representing 0.91% of outstanding shares, as part of the previously announced buyback. (Buyback Tranche Update)
Valuation Changes
- Fair Value: Increased from ¥12,873 to ¥14,609. This reflects a notable rise in estimated intrinsic value.
- Discount Rate: Edged up marginally from 8.48% to 8.51%.
- Revenue Growth: Projected annual growth has risen from 5.21% to 7.35%.
- Net Profit Margin: Improved from 27.78% to 31.36%.
- Future P/E: Decreased from 39.80x to 34.08x, signaling a more favorable valuation based on future earnings.
Disclaimer
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