KDDI (KDDIF – Research Report), the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Atul Goyal from Jefferies maintained a Sell rating on the stock and has a Yen3,730.00 price target.
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Atul Goyal has given his Sell rating due to a combination of factors related to KDDI’s performance and market position. Despite the company’s third-quarter operating profit aligning with consensus expectations, it underscores the stagnation in growth within the Japanese telecom sector. The slight year-over-year increase in operating profit further supports this view of limited growth potential.
Additionally, while there are some positive aspects such as the rise in average revenue per user (ARPU) and a notable increase in earnings per share (EPS) driven by a substantial share buyback, these are not sufficient to counterbalance the broader concerns. The future earnings target for fiscal year 2026 heavily depends on another large buyback plan, which highlights the lack of inherent growth drivers in the company’s operations.