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6857: Shareholder Returns And New Solutions Will Balance Higher Market Expectations

6857: Margins Will Likely Peak As Market Overenthusiasm Signals Pullback Ahead

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6857
AnalystConsensusTarget
Not Invested
Published 07 Nov 2024

Update shared on 01 Dec 2025

Fair value Increased 17%
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AnalystConsensusTarget's Fair Value
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1Y
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2.8%

Analysts have raised their price target for Advantest from ¥16,436 to ¥19,218. This increase is attributed to improved expectations for revenue growth, higher profit margins, and a lower discount rate.

What's in the News

  • Advantest announced the MTe power test platform, a solution designed to improve test efficiency and scalability for the fast-growing power semiconductor market. Early evaluations show significant throughput and productivity gains for customers. (Product-Related Announcements)
  • The Board of Directors approved a buyback plan authorizing up to 18,000,000 share repurchases worth ¥150,000 million, with the aim of boosting shareholder returns and capital efficiency. (Buyback Transaction Announcements)
  • Revised earnings guidance for the fiscal year ending March 31, 2026 forecasts higher sales, operating income, and net profit, which reflects strong performance in AI-related semiconductor sectors. (Corporate Guidance Raised)
  • Advantest released new advanced test solutions, including the 7038 Single Test Rack system and the next-generation CD-SEM E3660. These solutions help semiconductor manufacturers address increasing device complexity and stricter quality requirements. (Product-Related Announcements)
  • The new Advantest Power Optimization Solution (APOS) enables semiconductor manufacturers to reduce operational costs and meet sustainability goals through real-time management of test platform energy usage. (Product-Related Announcements)

Valuation Changes

  • Fair Value: Increased from ¥16,436 to ¥19,218. This reflects a higher consensus analyst price target.
  • Discount Rate: Decreased slightly from 8.85% to 8.71%. This indicates a modest reduction in risk perception.
  • Revenue Growth: Risen from 7.05% to 7.95%. This suggests improved expectations for future sales expansion.
  • Profit Margin: Marginally increased from 30.91% to 31.26%. This points to anticipated improvements in operational efficiency.
  • Future P/E: Increased from 39.60x to 45.17x. This signals higher valuation multiples being applied by analysts.

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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.