On Friday, Jefferies, a global investment banking firm, upgraded its stock price target for Olympus Corporation (7733:JP) (OTC: OCPNY) to ¥3,300, up from the previous ¥3,100. This adjustment accompanies the firm's reiteration of a Buy rating for the stock. The coverage transition from the Precision Team to the Healthcare Team at Jefferies is reflective of Olympus' shift to focusing solely on healthcare.
The analyst at Jefferies adjusted the current-year estimates for Olympus slightly, aligning them more closely with the company's guidance. This change is part of the rationale behind the increased price target. Despite facing headwinds in the Chinese and Japanese markets during the second quarter, the analyst anticipates an improvement in Olympus' performance in the second half of the year.
The revised price target suggests a potential upside of 17% for Olympus shares, reinforcing Jefferies' positive outlook on the stock. The firm's confidence in Olympus is tied to its transformation into a pure healthcare company, a sector that typically offers stable growth prospects.
Olympus Corporation, known for its medical equipment and cameras, has been undergoing a strategic transformation, which has garnered the attention of investors and analysts alike. The company's focus on the healthcare sector is expected to drive its future growth and profitability.
Investors and market watchers will be keeping a close eye on Olympus' performance in the coming months, especially in light of the anticipated recovery in the latter half of the year as projected by Jefferies. The updated stock price target and continued Buy rating are likely to influence market sentiment towards Olympus shares in the short term.
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