On Friday, Mitsui Mining & Smelting (5706:JP) (OTC: MMSMY) shares saw its price target increased by Jefferies to JPY6,500 from JPY6,000, while the firm retained a Buy rating on the stock. The adjustment reflects a positive outlook based on recent developments in the company's copper foil shipments and demand in related markets.
According to the firm's channel checks for the fiscal year ending March 2025, there has been a notable increase in copper foil shipments. This trend is expected to surpass the current market expectations, which have been relatively subdued.
The report indicated that the demand for server memory and Chinese smartphones, particularly foreign models like the iPhone, has surged, with sales volumes in China rising approximately 40% month-over-month and year-over-year in May.
The firm's analysis suggests that Mitsui Mining & Smelting is poised to enter a new growth phase, driven by the expansion of semiconductor markets and the accelerated adoption of AI servers. The report underscores the company's potential to outperform in its sector, maintaining its status as a top Buy recommendation.
Jefferies' stance comes at a time when the technology sector is witnessing a resurgence in demand, which could bode well for companies involved in the production of essential components like copper foil. Mitsui Mining & Smelting's stock price target increase reflects the firm's confidence in the company's growth trajectory and market position.
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