Morning Comments No. 5 reported on Symphonia's target-price increase, developments in other stocks and US long-term interest rates.
Daiwa Securities maintained its investment rating on Symphonia Technology at 2 (Outperform), citing growth opportunities related to SPEs and in the defense sector, and raised its target price from ¥9,800 to ¥15,000. Second-quarter operating profit is expected to rise 40% year on year, while consolidated orders are projected to increase 22% to ¥49.6 billion, with growth expected in clean-transfer systems and motion equipment.
Morgan Stanley MUFG Securities downgraded Nihon Kohden's investment rating from Equal-weight to Underweight and lowered its target price from ¥1,900 to ¥1,500 amid weak demand for medical equipment purchases in Japan. Based on the results of the Japan Hospital Survey, it revised down its forecasts from fiscal 2026 onward and is concerned that full-year guidance could be lowered at the November second-quarter results announcement.
Sumitomo Forestry extended its winning streak to 4 sessions as investors welcomed lower US long-term interest rates. Against the backdrop of the US 10-year Treasury yield falling into the 4.9% range, housing-related stocks such as D.R. Horton and Toll Brothers surged. Sekisui House also traded strongly.
Aeon Financial Service's target price was lowered from ¥1,590 to ¥1,530 after Tokai Tokyo Intelligence Lab judged that earnings recovery would be gradual. While pointing to increases in transaction volume and operating revenue for the cumulative second quarter of the fiscal year ending February 2027, it highlighted the impact of higher financial expenses accompanying rising interest rates and increased system costs.
Nippon Television Holdings drew attention after SMBC Nikko Securities lowered its target price. Although profit forecasts from the fiscal year ending March 2027 onward were revised down due to worsening advertising market conditions, revenue forecasts were revised up following the acquisition of KANAMEL as a wholly owned subsidiary. Over the long term, the company is expected to generate profit by strengthening its IP creation and production capabilities and expanding overseas.
Mizuho Financial Group plunged as the sharp decline in long-term interest rates in Japan and the US weighed on the stock. Selling spread amid increased purchases of US Treasuries, concerns over narrower bank net interest margins and the impact of AI investment.