Figma Shares Indicated To Open $105/$110
On Thursday, JPMorgan analysts upgraded TIS Inc (3626:JP) (OTC:TISNF) stock rating from Underweight to Neutral. The analysts cited the company’s fiscal year 2024 results and recent corporate communications as key factors for the upgrade.
The analysts set a new price target of ¥4,700, up from the previous target of ¥3,600. They noted an increased likelihood of TIS achieving its fiscal year 2026 targets, which include a return on equity (ROE) of at least 16% and a 30% gross margin.
TIS announced a ¥42.0 billion share buyback at the end of fiscal year 2024, aimed at helping reach its ROE target. The analysts expect another large-scale buyback at the end of fiscal year 2025. However, they expressed some concerns about the company’s fiscal year 2025 guidance, which projects a gross margin improvement of about 0.9 percentage points.
The analysts forecast a three-year compound annual growth rate (CAGR) of 2.6% for sales, 5.5% for operating profit, and 6.3% for earnings per share (EPS) from fiscal year 2024 to 2027. Despite challenges in acquiring new customers in credit SaaS and improving overseas business profitability, they believe TIS can align with its medium-term plan through cost improvements in its BPM segment and by curbing unprofitable projects.
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