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6857: Softer Revenue Outlook And Lower Margins Will Challenge Near-Term Upside

Update shared on 16 Nov 2025

Fair value Increased 13%
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AnalystConsensusTarget's Fair Value
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1Y
96.1%
7D
-5.1%

Analysts have raised their price target for Advantest from ¥14,609 to ¥16,436, citing ongoing confidence in the company's valuation even though projections for revenue growth and profit margins are slightly softer.

What's in the News

  • Advantest revised its full-year consolidated earnings forecast upward for the fiscal year ending March 31, 2026, citing surging demand from AI-related semiconductor growth. (Corporate Guidance: Raised)
  • The Board of Directors authorized a major share repurchase plan for up to 18 million shares, enhancing shareholder returns and capital efficiency. (Buyback Transaction Announcements)
  • Advantest announced the new MTe power test platform, addressing the rapid growth in power semiconductors for automotive, industrial, renewable energy, and telecom applications. (Product-Related Announcements)
  • Advantest is advancing AI-driven semiconductor testing by integrating NVIDIA's machine learning with its cloud solutions, aiming to deliver more efficient, adaptive, and predictive test processes for next-generation chips. (Product-Related Announcements)
  • The company introduced power optimization solutions and system-level test advancements, including the APOS software and the 7038 Single Test Rack (STR) system, supporting energy-efficient, scalable production for increasingly complex devices. (Product-Related Announcements)

Valuation Changes

  • Consensus Analyst Price Target has increased from ¥14,609 to ¥16,436, reflecting a higher fair value assessment.
  • Discount Rate has risen slightly, from 8.51% to 8.85%.
  • Revenue Growth expectations have eased somewhat, moving from 7.35% to 7.05%.
  • Net Profit Margin is projected to decrease marginally from 31.36% to 30.91%.
  • Future P/E ratio has increased from 34.08x to 39.60x, indicating a higher valuation multiple.

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.