Updating our target price

Research evidence excerpt

Updating our target price

Global Markets Research

15 June 2026Medley

4480.T 4480 JP / EQUITY: JAPAN PHARMACEUTICALS

RatingUpdating our target price Remains Buy

Target price

Focus on expansion into physician and pharmacist professions and Reduced from 4,670 JPY 4,300

strengthening of AI pay-per-use services in the medical platform segment

Closing price JPY 2,038We maintain our Buy rating and revise our DCF assumptions 12 June 2026

For details on earnings trends, see our 14 May Quick Note Medley:25/12Q1results:

Implied upside +111.0%Steadyperformance,brightprospectsforQ2onwards. In Q1 26/12 (Jan–Mar), we

confirmed continued growth in the HR platform segment, which began recovering in Q4 of

25/12. We also confirmed solid progress in April, the seasonal demand peak, with sales

growing y-y despite the positive impact of price increases on April 2025 sales. We expect

Relative performance chartthe AI-powered applicant tracking system (AI-ATS) launched in April to help reduce

missed recruitment management opportunities and uncollected fees from Q2 onward. We

raise the risk-free rate assumption used in our DCF model to from 1.5% to 2.0% to reflect

higher interest rates. Our earnings forecasts and other assumptions are unchanged. We

revise our WACC assumption from 8.4% to 8.9% and lower our DCF-based target price to

¥4,300. We maintain our Buy rating.

Our forecast

HR platform segment: From Q2 onward, we expect the AI-ATS launched in April to help

reduce missed recruitment management opportunities and uncollected fees. We expect

the acquisition of Recruit Medical Career (RMC) to contribute ¥0.5bn in sales and an

operating loss of ¥0.3bn in 26/12, as the April demand peak will not be included. In 27/12,