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    The Bull Case For Ebara (TSE:6361) Could Change Following Goldman’s Semiconductor Pivot Call On Profits

    Simply Wall St·12/12/2025 01:22:07
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    • Earlier this week, Goldman Sachs initiated coverage of Ebara Corp., highlighting strong growth potential in its semiconductor equipment business, especially chemical mechanical polishing systems within the Precision Machinery segment.
    • The bank’s view that semiconductor-related products could account for more than 60% of Ebara’s operating profits within a few years underscores how central this segment has become to the company’s future earnings mix.
    • We’ll now explore how this endorsement of Ebara’s Precision Machinery segment reshapes the company’s investment narrative and long-term positioning.

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    What Is Ebara's Investment Narrative?

    To own Ebara today, you need to believe that its transition from a diversified machinery group to a more semiconductor‑tilted earnings profile can justify a premium valuation and recent very large multi‑year returns. Short term, the key catalysts remain execution against upgraded 2025 guidance, the ongoing share buyback and how consistently management converts its solid order book into cash earnings, given the company already trades slightly above some fair value estimates and at a richer P/E than peers. Goldman Sachs’ new coverage mainly reinforces an existing narrative rather than changing it, but it could keep attention focused on the Precision Machinery segment and increase share price sensitivity to wafer fab spending cycles. That, in turn, heightens the importance of monitoring margin quality and already high non‑cash earnings.

    However, there is one less obvious risk around earnings quality that investors should not ignore. Ebara's shares are on the way up, but they could be overextended by 11%. Uncover the fair value now.

    Exploring Other Perspectives

    TSE:6361 1-Year Stock Price Chart
    TSE:6361 1-Year Stock Price Chart

    Three fair value estimates from the Simply Wall St Community span from about ¥3,639 to a very large ¥24,022, showing just how far apart individual views can be. Set against a premium earnings multiple and growing reliance on semiconductor exposure, this spread underlines why many market participants are rethinking what could drive or challenge Ebara’s performance from here.

    Explore 3 other fair value estimates on Ebara - why the stock might be worth 10% less than the current price!

    Build Your Own Ebara Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.