Moving into stage of boosting margins: Operator of GO taxi booking app, leveraging first-mover advantage to tap users, optimize prices

研报英文原文证据摘录

Moving into stage of boosting margins: Operator of GO taxi booking app, leveraging first-mover advantage to tap users, optimize prices

Global Markets Research

21 July 2026Go

581A.T 581A JP / EQUITY: JAPAN SOFTWARE & IT SERVICES

RatingMoving into stage of boosting margins Starts at Buy

Target price JPY 3,400Operator of GO taxi booking app, leveraging first-mover advantage to tap Starts at

users, optimize prices

Closing price JPY 2,794We initiate coverage with Buy rating and ¥3,400 target price 17 July 2026

Go operates Japan's biggest taxi booking app and has been increasing user numbers by

Implied upside +21.7%leveraging its pioneering position in the market. It has also been working to optimize prices

in recent years, and we forecast a sales CAGR of 16% through 29/5 over the 26/5

baseline. The phase of heavy spending on IT systems and marketing costs is now over,

and we expect margins to rise going forward. We forecast operating profit growth of 36%

Relative performance charty-y in 28/5 and 33% in 29/5, ahead of the Russell/Nomura Large Cap (ex financials)

average. In view of the company’s profit growth prospects, we use 27/5 as the base period

and apply around a 60% premium to the Russell Nomura Large Cap (ex financials) FY26

forecast P/E of around 20x to arrive at a fair P/E of 32x, which we apply to our 27/5

adjusted EPS forecast of ¥107 to obtain our target price of ¥3,400.

Features: Leveraging price negotiating power as biggest taxi booking app operator

The e-hailing services business, which covers the taxi booking app, generates revenues

by charging fees for matching users with taxi drivers. Taxi booking apps have seen rapid

uptake in Japan as they enable users to hail taxis rapidly and make it easy for drivers to

find customers.