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Investing.com - Jefferies has raised its price target on Money Forward Inc (TYO:3994) to JPY8,000.00 from JPY6,000.00 while maintaining a Buy rating on the stock.
The new price target represents an enterprise value-to-sales multiple of 6.8x based on the firm’s fiscal year November 2026 estimates.
Jefferies expects Money Forward to generate operating profit beginning in fiscal year 2026, with the Business Domain segment projected to reach sales of JPY65-70 billion by the end of fiscal year 2028.
The research firm forecasts EBITDA of JPY24.9 billion, which it describes as conservative compared to Money Forward’s target of JPY30 billion, while highlighting expected improvement in EBITDA margin toward 30% with a long-term company target exceeding 40%.
Jefferies noted that Money Forward management’s bonuses are conditional on executives remaining with the company for three years after fiscal year 2028, which should help retain staff after the company reports its first profit, and reaffirmed Money Forward as its "top pick in SaaS."
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