Nippon Telegraph & Telephone Corp

9432: XTKS (JPN)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	¥‎395.00	Zdxwty	Yhyftfz

NTT: Asset Sales Required to Meet Fiscal 2023 Guidance; Valuation Down to JPY 172 From JPY 176

Dan Baker

Feb 13, 2024

We reduced our fair value estimate for Nippon Telegraph and Telephone, or NTT, to JPY 172 per share from JPY 176 following a third-quarter fiscal 2023 result (quarter-ended December 2023) that was below our expectations. Our narrow moat rating for NTT based on efficient scale is also retained with the firm now earning ROIC above WACC. We see the shares as broadly fairly valued at these levels.

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