Updating our target price

Research evidence excerpt

Updating our target price

Global Markets Research

15 June 2026M3

2413.T 2413 JP / EQUITY: JAPAN PHARMACEUTICALS

RatingUpdating our target price Remains Buy

Target price

Reduced from 3,540 JPY 3,300We expect earnings growth from launch of AI services, use of AI

Closing price JPY 1,610.0We keep our Buy rating, revise our DCF model assumptions 12 June 2026

For details of earnings trends and our forecasts, see our 1 May 2026 report on M3. For

Implied upside +105.0%27/3, we still forecast strong growth in the medical workplace DX business as the

company works through its end-26/3 order backlog at the pharmaceutical marketing

business and acquires specialty pharmaceutical projects. We revise the risk-free rate

assumption in our DCF model from 1.5% to 2.0% to reflect higher interest rates. We retain

Relative performance chartour earnings forecasts and other assumptions. Accordingly, we revise our WACC

assumption from 7.5% to 8.0% and lower our DCF-derived target price to ¥3,300. We

maintain our Buy rating on the stock.

Earnings forecasts

We forecast sales growth of 15.9% y-y and operating profit growth of 15.4% in 27/3. We

expect the company to increase the number of AI-related engineers, and expect the

benefits of AI deployment to start to emerge. In the medical platform segment, we expect

sales growth to accelerate with each passing quarter as the company works through its

end-26/3 order backlog for pharmaceutical marketing services. We also expect progress

with high-precision marketing solutions and cross-selling based on AI-based clinic opening

projections (including property, equipment installation and design, and advertising support

for physicians opening new clinics). We expect stronger sales of services with high added

Source: LSEG, Nomura