First Read: Japan Exchange Group "Market environment still favourable, but..."

Research evidence excerpt

First Read: Japan Exchange Group "Market environment still favourable, but..."

Global Research

10 July 2026ab

First Read

EquitiesJapan Exchange Group

Market environment still favourable, but share Japan

price looks somewhat ahead of expectations Diversified Financial

12-month rating Sell

12m price target ¥2,000.0

We maintain our Sell rating

Prior : ¥1,800

Based on the current market environment, we are revising our Q1 earnings outlook and

forecasts from FY3/27 onward and raising our price target to ¥2,000 from ¥1,800. We Price (10 Jul 2026) ¥2,177

maintain our Sell rating. The share price has recently risen to a level exceeding our RIC: 8697.T BBG: 8697 JP

revised price target, which already reflects the favourable market environment. We

Trading data and key metrics

therefore believe the upside potential from near-term earnings outperformance has

been largely priced in. 52-wk range ¥2,259-1,452

Market cap. ¥2,246b/US$13.9b

Conditions for evaluation Shares o/s 1,032m (ORD)

Short-term earnings momentum has substantially surpassed previous forecasts, which Free float 98%

we view positively. However, for a sustained reevaluation, it will be important to see how Avg. daily volume ('000) 4,068

successfully the company can cultivate revenue streams beyond cash equities. As a key Avg. daily value (m) ¥8,112.7

participant in Japan's financial markets, one focus will likely be whether JPX can respond Common s/h equity (03/27E) ¥346b

broadly to the diverse funding needs that emerge going forward, including through P/BV (03/27E) 6.4x

products beyond equities. To achieve this, we believe the company will need to continue Tier 1 ratio -

planting the seeds for future growth through proactive investment and preparation for

EPS (reported, basic) (¥)