Update shared on 16 Dec 2025
Fair value Increased 3.24%Analysts have raised their price target for NEC from ¥5,860 to ¥6,050. This reflects slightly higher assumed revenue growth, modestly improved profit margins, and a marginally richer future P E multiple despite a small uptick in the discount rate.
What's in the News
- NEC to expand its strategic partnership with Broadcom, adopting VMware Cloud Foundation to drive secure, modern private cloud offerings and managed services under the NEC BluStellar Scenario model (Client Announcements)
- Netcracker Technology and NEC to support KDDI's long term BSS strategy with Netcracker Digital Commerce and Monetization and Active Mediation, with NEC as prime system integrator (Client Announcements)
- NEC to hold an Analyst and Investor Day, providing updates on strategy, operations, and financial outlook (Analyst and Investor Day)
- Board approves plan for NEC, via its North American subsidiary, to acquire CSG Systems International through a merger agreement (Board Meeting)
- NEC announces an interim dividend of JPY 16.00 per share and reiterates revenue guidance of JPY 3,420,000 million for the year ending March 31, 2026 (Dividend Increases, Corporate Guidance)
Valuation Changes
- Fair Value: Raised slightly from ¥5,860 to ¥6,050, reflecting a modestly more optimistic outlook.
- Discount Rate: Increased marginally from 7.24 percent to 7.28 percent, implying a slightly higher required return.
- Revenue Growth: The assumed long term growth rate has risen slightly from about 4.22 percent to 4.35 percent.
- Net Profit Margin: The forecast margin has increased modestly from roughly 8.48 percent to 8.66 percent.
- Future P/E: The target valuation multiple has edged up from 28.63 times to 28.87 times forward earnings.
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