Updating our forecasts: Raising forecasts and target price

研报英文原文证据摘录

Updating our forecasts: Raising forecasts and target price

Global Markets Research

29 July 2026Kyocera

6971.T 6971 JP ADR:KYOCY US / EQUITY: JAPAN ELECTRONIC PARTS

RatingUpdating our forecasts: Raising forecasts and

Remains Neutraltarget price

Target price

Profit growth in components operations looks sustainable, with products Increased from 2,540 JPY 3,300

related to AI data centers at the core of growth

Closing price JPY 3,617We keep our Neutral rating but raise our forecasts on sustained profit growth in 28 July 2026

components operations

We raise our earnings forecasts for Kyocera, having hiked our profit forecasts for Implied upside -8.8%

components operations (the core components and electronic components segments), and

hike our target price to ¥3,300. We keep our Neutral rating on the stock. We think profit

growth will be sustainable, as products related to AI data centers are at the core of growth

in each of the company's mainstay components businesses. As a result of upward Relative performance chart

revisions to our growth forecasts for components operations, we lower our cost of equity

capital assumption from 6.5% to 5.8% (we lower our cost of capital forecast for the

electronic components segment from 5.5% to 5.0%, keep our forecast for the core

components segment at 8.0%, and raise our assumption for the profit weighting of

components operations from 60% to 75%). Kyocera's P/E has been on an upward

trajectory since it started buying back shares in August 2025. Some of this rise in

valuations may prove temporary, however, as we view the current annual share buyback

level of ¥250bn as unsustainable.

We forecast profit growth for electronic components, semiconductor components,

and industrial & automotive components from AI-related applications