Panasonic Holdings

Research evidence excerpt

Panasonic Holdings

Global Markets Research

30 July 2026Panasonic Holdings

6752.T 6752 JP / EQUITY: JAPAN CONSUMER ELECTRONICS

RatingWe raise our rating from Neutral to Buy Up from Neutral Buy

Target price

Stronger-than-expected growth in AI infrastructure-related businesses and peripheral Increased from 3,600 JPY 4,500

businesses; recent share price correction represents good entry opportunity

Closing price JPY 3,584We raise our rating to Buy on further rise in weighting of profits from AI data center- 30 July 2026

related businesses

In Apr–Jun 2026, adjusted operating profits came in at ¥186.4bn, or 2.0x y-y the prior-year level, Implied upside +25.6%

sharply higher than our ¥139.0bn forecast, which we view as positive. Sales of energy storage

systems (battery backup units; BBUs) for datacenters and multilayer substrate materials were

steady, and peripheral businesses that benefit from AI investment (mounters, servo motors,

sensors) grew by more than expected. We raise our 27/3 adjusted operating profit forecast from Relative performance chart

¥645.0bn to ¥708.0bn, which is more bullish than guidance of ¥650.0bn (previously ¥600.0bn).

We obtain our target price of ¥4,500 by multiplying our 28/3 adjusted EPS forecast (which

excludes IRA effects) of ¥196 by a P/E of around 23x. We increase the premium we apply to the

benchmark P/E from 20% to around 40% to reflect the rise in the profit weighting of AI data

center-related operations, which has boosted our medium-term growth forecast, and potential

upside such as improved margins as a result of price hikes. With earnings momentum remaining

strong, we think the recent sharp decline in the share price has made the stock look undervalued,

presenting a good entry point.