In morning trading, stocks including TOKYO KEIKI INC., NTT, Sinfonia, PHC Holdings, FANUC and Digital Plus moved against a backdrop of lower investment ratings and target price revisions by financial institutions, as well as fraud in a digital gift business.
SMBC Nikko Securities lowered its investment rating on TOKYO KEIKI INC. from "Outperform" to "Neutral" and cut its target price from ¥8,000 to ¥6,000. It indicated that the increase in orders driven by defense budget expansion had run its course and also pointed to a lack of near-term catalysts. Although it revised its earnings forecasts based on improved margins in each segment, its explanation highlighted the risk of a decline in the order backlog.
NTT announced technology for automatically acquiring voice interactions and enabling natural conversations. The technology is reportedly expected to be used to address labor shortages at call centers. Its impact on the share price is considered limited.
SMBC Nikko lowered Sinfonia Technology's target price from ¥18,400 to ¥14,300 while maintaining its outlook that high growth in the defense, rocket and semiconductor fields would continue. The gap between the current share price and the new target price is considered large, and future earnings trends are attracting attention.
MSMUFG Securities raised PHC Holdings' FY2026 operating profit outlook and increased its target price from ¥1,350 to ¥1,650. Contributions from the diabetes management business and the exclusion of foreign-exchange effects were viewed favorably and cited as factors behind the upward revision.
Iwai Cosmo Securities lowered FANUC's target price from ¥7,500 to ¥6,400 while stating that order momentum for semiconductor equipment and data-center component machining remained firm.
Digital Plus plunged on concerns over unauthorized access at the Giftee Group. The company reportedly expects fraudulent issuance on a system operated by its subsidiary Giftee to result in an extraordinary loss of approximately ¥550 million.