Nihon Kohden’s share price fell sharply. A US-based brokerage cut its earnings forecasts and downgraded its investment rating. The target price was cut from ¥1,900 to ¥1,500.
Nihon Kohden’s share price fell sharply, and a US-based brokerage downgraded its investment rating. Morgan Stanley MUFG Securities changed its rating on the company from “Equal-weight” to “Underweight” and also cut its target price.
The brokerage reportedly lowered its earnings forecasts. Against consensus operating profit estimates of approximately ¥22.0 billion for the fiscal year ending March 2027 and approximately ¥24.0 billion for the fiscal year ending March 2028, it now expects approximately ¥17.5 billion and ¥18.6 billion, respectively. It also indicated that selling, general and administrative expenses have not been reduced as much as expected.