Some growth areas, but overall low growth

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Some growth areas, but overall low growth

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NTT (9432)

Reinstating Coverage: NEUTRAL | PO: 155 JPY | Price: 147 JPY

06 July 2026

Reinstate coverage at Neutral with ¥155 PO Equity

The ¥155 price objective (PO, ADR: $1) is based on our FY3/28E EV/EBITDA multiple of

7.5x. The Neutral rating reflects two points: (1) growth expectations for the consolidated Hideaki Tanaka >>

business are relatively weak; while (2) the share price appears to be fairly valued. Research Analyst BofAS Japan

Although there are growth areas such as the data center (DC) and finance businesses, +81 3 6225 8431

the relatively high contribution (just under 20%) from the mature regional hideaki.tanaka@bofa.com

telecommunications business is one factor behind the lower overall growth outlook. HiromuResearchYabukiAnalyst>>

BofAS Japan

Relatively low expected earnings growth hiromu.yabuki@bofa.com

We estimate NTT’s operating profit to deliver a three-year CAGR of 3%, which is relatively

low within the sector. While finance is expected to see a strong a CAGR of 16%, driven

by d CARD, d Payment, and consolidation effects, the DC business is expected to see a Stock Data

normalized CAGR of 13%, but appears as a CAGR of -7% due to the decline in one-off

Price (Common / ADR) 147 JPY / 22.70 USD

gains. In addition, regional telecommunications is expected to see only a CAGR of 1%. As

Price Objective 155 JPY / 1.00 USD

a result, we believe the overall consolidated growth rate is structurally constrained.

Date Established 6-Jul-2026/ 6-Jul-2026

Conditions for upgrading to Buy Investment Opinion B-2-7 / B-2-7

52-Week Range 143-167 JPY

Excluding a share-price decline, conditions for an upgrade to Buy would include stronger-

Market Value (mn) 13,310,897 JPY