No. of Recommendations: 4
Lets open the crystal ball
2025-Q3 2026-Q3 2027-Q3 2028-Q3 Run Rate
Services 87,052 96,302 104,006 109,206 436,826
Cloud 15,157 30,709 53,741 80,611 299,228
Other Bets 344 372 402 434 1,736
102,553 127,383 158,149 190,251 761,005
RUN RATE 509,532 632,594 761,005
VALUATION 3,380,850 3,795,568 4,566,036
STOCK PRICE 6x 309 371
STOCK PRICE 7x 360 433
STOCK PRICE 8x 412 495
I attached some growth rates to each line of business
Services : 11% -> 8% -> 5%
Cloud : 103% ->75% -> 50%
In 12 months we could be looking at $632B, in 24 months $761B. These are staggering numbers. Put a 6x multiple on these and you get price target at $371 24 months out -
roughly 35% higher than current levels ($275).
Note: The current valuation multiple using this approach is 6.6x - and that is after the 20% drop... so you can get to $433 / share without assuming really any recovery/expansion in multiple.
tecmo
...
FYI: I added at $278 today...
