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How Verizon BMW Connected-Car Deal At KDDI (TSE:9433) Has Changed Its IoT Investment Story

Simply Wall St · 20h ago
  • On July 9, 2026, Verizon Business and KDDI announced a collaboration with BMW Group to deliver 5G- and LTE-enabled connected-vehicle services in newly manufactured BMW, MINI and other BMW Group models for the U.S. market, using KDDI’s Global Communications Platform and Verizon’s 5G Standalone network.
  • This partnership highlights KDDI’s role as an IoT connectivity enabler for global original equipment manufacturers, reinforcing its presence in automotive telematics and data-rich services beyond its domestic mobile business.
  • Next, we will examine how KDDI’s deeper role in BMW’s U.S. connected cars may influence its IoT-focused investment narrative.

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KDDI Investment Narrative Recap

To own KDDI, you need to believe its domestic telecom base can support steady cash generation while newer areas like IoT and connected services gradually matter more. The BMW Verizon deal underlines that potential, but it does not immediately change the most pressing issues around subscriber growth, ARPU pressure and competition in Japan, which still look like the key short term catalyst and main risk.

Among recent announcements, the new share buyback program of up to ¥300,000 million and 146,000,000 shares stands out against this BMW news. While the first tranche saw no purchases, the authorization itself keeps capital return on the table as KDDI invests in IoT and data centric projects, and it may interact with how investors weigh domestic growth challenges against emerging connected vehicle opportunities.

Yet alongside this connected car progress, investors should also be aware of rising competition and churn risk in KDDI’s core mobile business...

Read the full narrative on KDDI (it's free!)

KDDI's narrative projects ¥6819.9 billion revenue and ¥813.0 billion earnings by 2029. This requires 3.9% yearly revenue growth and about a ¥105.9 billion earnings increase from ¥707.1 billion.

Uncover how KDDI's forecasts yield a ¥2803 fair value, in line with its current price.

Exploring Other Perspectives

TSE:9433 1-Year Stock Price Chart
TSE:9433 1-Year Stock Price Chart

Some of the lowest ranked analysts were expecting only about ¥6,657.2 billion in revenue and ¥757.6 billion in earnings by 2029, which paints a more cautious picture than the BMW connected car opportunity might suggest.

Explore 2 other fair value estimates on KDDI - why the stock might be worth just ¥2803!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

  • A great starting point for your KDDI research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
  • Our free KDDI research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KDDI's overall financial health at a glance.

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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.