OBIC Business Consultants Lower GSe TP on Higher Costs

Goldman Sachs maintains a Buy rating on OBIC Business Consultants while lowering its target price to ¥9,100 due to higher SG&A expenses. The firm anticipates double-digit profit growth driven by a mandatory customer migration from on-premise to cloud services.

Key Takeaways

• 1.Cloud migration is accelerating as the company approaches the first phase of ending on-premise maintenance in April 2027.
• 2.Operating profit is expected to beat guidance due to conservative margin assumptions by management despite rising SG&A costs.
• 3.Target price was lowered to ¥9,100 from ¥9,400 due to higher projected advertising and promotion costs and an increased WACC to 8%.

Table of Contents

• Earnings estimates
• Solutions business
• Investment Thesis
• Price Target Risks and Methodology
• Disclosure Appendix
• Price target and rating history chart(s)

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