Update shared on 02 Nov 2025
Fair value Increased 4.44%Narrative Update on TDK Analyst Price Target
Analysts have raised their price target for TDK from ¥2,316 to ¥2,419, citing improved profit margins and valuation metrics, even as revenue growth expectations remain tempered.
What's in the News
- TDK revised consolidated earnings guidance for the year ending March 31, 2026, increasing net sales and profits projections due to strong ICT sector performance and resilient demand for data centers (Key Developments).
- Announced a dividend of JPY 16 per share for Q2 ended September 30, 2025, following a five-for-one share split effective October 1, 2024. The dividend is payable December 2, 2025 (Key Developments).
- Entered into a collaboration agreement with Gelion plc to co-develop advanced rechargeable battery technologies using Sulfur battery Cathode Active Material. This includes prototype development at TDK's Nagano, Japan facility (Key Developments).
- Board meetings held in October and September 2025 addressed dividend distributions and the transfer of an automotive power supply business to Astemo, Ltd via company split (Key Developments).
Valuation Changes
- Fair Value: Increased from ¥2,316.47 to ¥2,419.41, reflecting a modest upward revision.
- Discount Rate: Decreased marginally from 6.80% to 6.77%.
- Revenue Growth: Lowered from 4.01% to 2.69%, indicating more tempered growth expectations.
- Net Profit Margin: Improved from 9.25% to 9.35%.
- Future P/E: Rose from 23.18x to 24.04x. This suggests a slightly higher valuation multiple.
Disclaimer
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