Earnings update: We raise forecasts and target price

研报英文原文证据摘录

Earnings update: We raise forecasts and target price

Global Markets Research

28 July 2026Hirose Electric

6806.T 6806 JP / EQUITY: JAPAN ELECTRONIC PARTS

RatingEarnings update: We raise forecasts and target

Remains Buyprice

Target price

We raise forecasts for general industrial and telecommunications Increased from 32,500 JPY 33,400

connectors, focus on growth strategies for newly entered probe market

Closing price JPY 28,455We raise target price to ¥33,400, reiterate Buy rating 27 July 2026

We raise our earnings forecasts for Hirose Electric, having revised our assumptions, hike

Implied upside +17.4%our target price to ¥33,400, and reiterate our Buy rating. We forecast strong earnings. We

revise our forecasts first because we think the demand outlook for the company’s general

industrial connectors has improved further, with major semiconductor companies having

increased their capex plans. Second, we assume rising demand for the company's

Relative performance chartnetwork switch connectors (see below). Third, we revise our USD/JPY assumption from

155 to 160.

We raise forecasts for shipments of connectors for SPE and inter-data center

networking

We raise our forecasts for earnings from general industrial and telecommunications

connectors. In the general industrial category, we expect rising demand for connectors for

SPE servo motors based on the upward revisions that semiconductor companies have

been making alongside Apr–Jun results announcements. Hirose Electric has been

increasing its share of the servo motor connector market, and we think it will generate

growth in excess of the industry average. In telecommunications, we look to rising demand

for connectors from major US network switch manufacturers. Demand for carrier-grade