Daily BriefsJapan

Japan: Anritsu Corp and more

In today’s briefing:

  • Anritsu (6754 JP): 5G Business to Expand Until FY Mar-24

Anritsu (6754 JP): 5G Business to Expand Until FY Mar-24

By Scott Foster

Down nearly 30% since January 28, the shares are now selling at 17x management’s EPS guidance for FY Mar-21 and 13x our EPS estimate for FY Mar-24, when management expects 5G-related sales and profits to peak.

Premature concern over the next cyclical downturn appears to have been discounted. Delays to 5G roll-outs caused by the pandemic should also be in the price.

Over the coming three years, sales should rise by more than 20% and operating profit by more than 30%, driven by 5G and growing economies of scale in the company’s other businesses.

Buy back in for the long term.


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