Assessing Minebea Mitsumi (TSE:6479) Valuation Following New Segment Outlook in Morgan Stanley Coverage

Morgan Stanley has resumed its analysis of MINEBEA MITSUMI (TSE:6479), providing fresh projections for fiscal year 2026. The firm expects profit growth in most business areas, even as the semiconductor and electronics segment faces a decline.

See our latest analysis for MINEBEA MITSUMI.

MINEBEA MITSUMI shares have shown real momentum lately, notching a 27.7% gain over the past 90 days and a 20.5% share price return year-to-date. Looking at the bigger picture, total shareholder returns have also been strong, with a 13.3% gain over the past year and 74% over five years. This recent outperformance suggests growing optimism around both the company’s outlook and its ability to weather segment shifts, as highlighted by Morgan Stanley’s fresh coverage.

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With fresh analyst forecasts and recent outperformance driving enthusiasm, the key question now is whether MINEBEA MITSUMI’s rally leaves room for further upside, or if the market has already priced in the next chapter of growth.

Most Popular Narrative: 5.4% Undervalued

Compared to MINEBEA MITSUMI's last close at ¥3,014, the most popular narrative places its fair value at ¥3,186.88, suggesting there is still upside based on projected fundamentals. This view draws from a consensus among analysts who have sifted through recent business shifts and financial guidance.

Minebea Mitsumi is investing in expanding production capacity for aircraft and ball bearings, with new plants in Thailand and India. This could drive significant revenue growth as demand recovers in the aerospace sector.

Read the complete narrative.

Want to know why analysts see room for further gains? Their valuation hinges on a future profit multiple and a bold margin recovery. Are the growth assumptions too aggressive, or are we just scratching the surface? Unlock the financial forecast fueling their optimism and see what sets this projection apart from the usual industry models.

Result: Fair Value of ¥3,186.88 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing currency fluctuations and weaker sales in some segments could present meaningful headwinds to MINEBEA MITSUMI’s growth prospects in the coming years.

Find out about the key risks to this MINEBEA MITSUMI narrative.

Another View: Multiples Send a Mixed Signal

While analysts see MINEBEA MITSUMI as undervalued based on the consensus fair value, our analysis of its price-to-earnings ratio offers a different angle. The stock currently trades at 21.2 times earnings, which is not only higher than the Japan Machinery industry average of 13.7x but also right in line with its peer average of 21.4x. However, compared to its fair ratio of 22.3x, the current valuation still leaves a small gap for upside, though not without risk as the industry standard lags behind. Does this suggest the market is betting on stronger performance ahead, or are investors overlooking sector-wide caution?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own MINEBEA MITSUMI Narrative

If the latest consensus does not quite match your perspective, you can review the numbers and develop your own interpretation in just a few minutes, then Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding MINEBEA MITSUMI.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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