Tokyo Keiki’s share price fell for a fourth straight day, while SMBC Nikko reportedly downgraded its investment rating on the company, saying the phase of order growth driven by higher defense spending had run its course.
SMBC Nikko has reportedly downgraded its investment rating on Tokyo Keiki. The market trend has been described as a reassessment of the company’s stock, with the change in investment view cited as a factor behind the revision.
The expansion of the defense budget is said to have supported growth in orders in some areas, but there are also indications that the impact of this expansion is expected to peak in the next phase. This has led to the view that the company’s order growth has run its course for the time being.