NTT: Investor Day Highlights Strong Global Data Center Portfolio

Narrow-moat NTT has held in investor day, focusing on two of its businesses, NTT global data centers and the smart energy business. As a recap, NTT plans to increase its EBITDA by 40% over the next five years from JPY 1.3 trillion in fiscal 2022 to JPY 1.8 trillion by fiscal 2027. NTT’s global data center business is expected to contribute around 20% on the incremental consolidated company growth target, with its EBITDA expecting to grow from JPY 80 billion in fiscal 2022 to JPY 180 billion by fiscal 2027. The smart energy business is tasked with helping NTT meet its target of level 3 carbon neutrality by 2040. We make no changes to our existing forecasts or our JPY 176 per share fair value for NTT. The company looks broadly fairly valued at these levels.