Goldman Sachs — Fujitsu (6702.T): Target Raised to ¥4,380 on IT Services Strength; Buy Maintained
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Goldman Sachs maintains its Buy rating on Fujitsu (6702.T) and raises the 12-month target price from ¥4,330 to ¥4,380, based on 21x FY3/28E P/E versus an 18x industry average, applied to forecast FY3/28 EPS of ¥209 (roughly 21-22x for IT services and 21x for hardware, weighted 80/20). At the current price of ¥3,662, the target implies 19.6% upside. FY3/27 operating profit was trimmed 1% to ¥411bn (+18% yoy), slightly below ¥415bn guidance, with adjusted operating profit of ¥421bn (+8%) versus ¥425bn guided; FY3/28-FY3/29 estimates were raised 1%/2%. Service Solutions drives earnings, up 18% yoy (+¥65.5bn), with Japan up 21% (+¥67.6bn) and overseas down 6% (-¥2.1bn) on exiting high-margin European public-sector projects. Hardware Solutions fell 9% (-¥6bn) on memory price increases and Ubiquitous Solutions dropped 28% (-¥10.8bn); price pass-through should shrink the drag from 2Q. AI-driven development covers about 70% of projects, lifting segment margin 1.8pp. Goldman expects a third consecutive year of double-digit profit growth; the premium multiple reflects faster growth, shareholder returns, generative AI positioning and defense exposure. Watch the September 16 IR Day for AI server and physical AI profit contributions.