BayCurrent (6532): Raise price target to ¥8,500: Expect faster hiring and defense/security-related demand to prevent a slowdown

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BayCurrent (6532): Raise price target to ¥8,500: Expect faster hiring and defense/security-related demand to prevent a slowdown

J P M O R G A N Asia Pacific Equity Research

30 July 2026

BayCurrent (6532)

Raise price target to ¥8,500: Expect faster hiring Overweight

and defense/security-related demand to prevent a 6532.T, 6532 JP

slowdown Price (30 Jul 26):¥7,329

▲Price Target (Dec-27):¥8,500

Prior (Dec-26):¥6,600

We revise our earnings forecasts in response to 1Q FY2026 results and our most

recent company contact. We raise our price target to ¥8,500 from ¥6,600, extending Japan Equity Research

our timeline to end-2027 from end-2026, and maintain our Overweight rating. The IT Services and Telecoms

main updates are (1) we raise our medium-term sales and SG&A cost forecasts (and AC Matthew Henderson

fine-tune our operating profit forecasts through FY2028) to reflect aggressive (81-3) 6736-8831

recruitment, and (2) we identify long-term business opportunities in defense and matthew.henderson@jpmorgan.com

security-related and other structural growth areas, and expect these to prevent a JPMorgan Securities Japan Co., Ltd.

slowdown through FY2029. Management has not previously talked about the

security/defense arena so some market participants have doubts about its

Style Exposure

capabilities in these areas, but we commend BayCurrent’s management structure

that can quickly establish a framework to address important challenges. We think

BayCurrent’s biggest business risk is recruitment competition heating up, and our

impression is that recruitment costs are becoming more burdensome but that

corresponding cost pass-through is making smooth progress because its hiring is

tailored to customers’ needs. We expect the three-year EPS CAGR to stay high at