Mabuchi Motor shares rose for the third straight day, while a major domestic securities firm raised its price target to ¥1,860 and maintained its rating.
SMBC Nikko Securities, which covers Mabuchi Motor, raised its price target on the 13th from the previous ¥1,150 to ¥1,860 and maintained its investment rating at 2, the middle of its three-level scale.
The securities firm revised its earnings forecasts following the second-quarter results, forecasting consolidated operating profit of ¥26.8 billion for the fiscal year ending December 2026, compared with the company's forecast of ¥26.5 billion, and ¥30.1 billion for the fiscal year ending December 2027.
With the slowdown in the Chinese market expected to continue, it is reported to expect a medium- to long-term recovery in earnings from 2026 onward, based on an expansion in orders for medium-sized automotive motors.