freee (4478.T): Updating forecasts, raising target price to ¥3,500

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freee (4478.T): Updating forecasts, raising target price to ¥3,500

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17 Jun 2026 05:55:30 ET │ 13 pages

freee (4478.T)

Updating forecasts, raising target price to ¥3,500

CITI'S TAKE

We update our forecasts to reflect our drill-down of Q3 results. While Q3

results contained no surprises, we believe earnings progressed steadily.

Although we initially set our forecasts conservatively in relation to FY6/26 Buy / High Risk

guidance, we revise our forecasts as performance has progressed steadily in Price (17 Jun 26 15:30) ¥1,917.0

line with guidance. In line with our revised forecasts, we raise our target

price from ¥3,300 to ¥3,500. We maintain our Buy/High Risk rating. Target price ¥3,500.0↑

from ¥3,300.0

Q3 results review: strong growth continues — Q3 results showed sales of ¥10.9bn Expected share price return 82.6%

(+27% YoY), with high growth continuing. Meanwhile, OP declined to ¥0.09bn Expected dividend yield 0.0%(versus ¥0.32bn in FY6/25 Q3) and adjusted OP to ¥0.45bn (¥0.66bn). While the

firm has booked operating profit in every quarter of FY6/26, the scale of the profits Expected total return 82.6%

remains low and has fluctuated due to sales personnel growth and AI investment. Market Cap ¥113,653M

Despite quarterly fluctuations, however, we see annual profits continuing to grow as

US$714Mrevenue increases.

Pursuing AI compatibility — The company launched MCP servers accessible from

AI agents ahead of others in the industry, thus enhancing AI compatibility. With a

structure that provides easy access to the freee system from external AI agents, we Price Performance

think freee is putting together a system that improves usability and operational (RIC: 4478.T, BB: 4478 JP)

efficiency. To meet various corporate needs freee offers a wide-ranging AI support