Woofun AI reports that Citigroup raised its price target for Kabuto Holdings from 73,000 yen to 140,000 yen in a June 25 report, maintaining a "Buy/High-Risk" rating. The bank attributes the upgrade to strong enterprise SSD demand and NAND supply constraints expected to persist until 2027, noting that Long-Term Agreements may reduce earnings volatility and narrow historical valuation discounts.

Citigroup projects Kabuto's FY3/27 revenue at 9.46 trillion yen with 7.68 trillion yen operating profit, implying margins above 80% through FY3/29.

However, risks include potential U.S. export restriction relaxations, industry capex surges, inventory adjustments, and yen appreciation, which could reduce operating profit by approximately 40 billion yen per 1 yen gain.