The morning comments reported target price increases or the initiation of new coverage by the respective securities firms for six stocks: Symphonya Technology, Axial Retailing, Ajinomoto, HOYA, Seven Bank and Shibaura Mechatronics.
For Symphonya Technology, Nomura Securities raised its target price from ¥19500 to ¥22000, maintaining its Buy rating, to reflect increased orders for clean transport systems. Operating profit is expected to be revised upward from the previous forecasts of ¥22.7 billion to ¥24.6 billion for FY27.3 and from ¥28.9 billion to ¥32.2 billion for FY28.3, mainly due to higher orders.
For Axial Retailing, Daiwa Securities raised its target price from ¥1250 to ¥1300, maintaining an investment rating of 3 (Neutral), on expectations of higher operating profit from accelerated store openings. Operating profit is declining in 1Q of FY26 due to higher SG&A expenses and a lower gross margin, but Daiwa noted that profit growth is expected to gain momentum from FY27 onward based on the store-opening plan.
For Ajinomoto, SMBC Nikko Securities maintained its view that the growth story is unchanged and judged that the company is in a phase of waiting for the timing of a re-rating. It is expected to maintain its Outperform rating and raise its target price from ¥3650 to ¥6100. Healthcare ABF is expected to drive earnings, while larger and more multilayered products for AI servers are expected to expand, and the CDMO business is also attracting attention.
For HOYA, SBI Securities initiated coverage with a Buy rating and set a target price of ¥29400. Although demand for EUVL-related equipment is trending lower, demand for mask blanks remains firm and demand for glass substrates for HDDs was assessed as strong.
For Seven Bank, Daiwa Securities raised its target price from ¥290 to ¥370 while maintaining a Neutral rating, expecting substantial profit growth this fiscal year and an upward revision at the interim results. Lower depreciation expenses for domestic ATMs and the contribution of fee revenue from expanding ATM installations are anticipated.
For Shibaura Mechatronics, SBI Securities initiated coverage with a Buy rating and set a target price of ¥6900, citing strong demand for equipment used in advanced packaging. Future sales growth for CoWoS and CoPoS and expanding demand related to edge AI were identified as catalysts, while risks including competition from local companies and weak demand for equipment used in smartphones were also mentioned.