We await effective use of assets

研报英文原文证据摘录

We await effective use of assets

Global Markets Research

24 June 2026Eizo

6737.T 6737 JP / EQUITY: JAPAN CONSUMER ELECTRONICS

RatingWe await effective use of assets Remains Neutral

Target price

We forecast first profit growth in five years for 27/3 on bottoming out in Increased from 2,300 JPY 2,750

healthcare and delayed V&S projects

Closing price JPY 2,397We retain Neutral rating, forecast stable growth in niche areas 23 June 2026

Eizo has built up a distinctive position in the industry through its strong quality control

Implied upside +14.7%capabilities and its strengths in high-mix, low-volume manufacturing. Our focus is on the

new management team's strategies for operations and finances aimed at boosting returns

on capital. We obtain our target price of ¥2,750 by multiplying our 27/3 adjusted EPS

forecast of ¥112 by a P/E of 24–25x. We previously valued the stock in line with the

Relative performance chartRussell/Nomura Large Cap (ex financials) average but now assign a premium of just over

15% as we not only forecast consistent growth in niche areas, but also take a positive

view of the company's solid balance sheet and the way that the new management team

has been stepping up initiatives aimed at improving returns on capital. Our target price

equates to a P/B of roughly 0.6x our end-27/3 BPS forecast, and we retain our Neutral

rating as we think any further improvement in valuations will require greater clarity about

growth investments that make use of the company's asset holdings.

We expect earnings to recover in 27/3 on recovery at healthcare and V&S segments

We trim our 27/3 operating profit forecast from ¥5.2bn to ¥4.8bn (up ¥2.4bn y-y), versus

guidance of ¥3.3bn as we think the projects pushed back at the vertical & specific (V&S)