On Tuesday, Jefferies made a bullish move on Kokusai Electric Corp (6525:JP) stock, raising the rating from Hold to Buy and increasing the price target to ¥5,300 from the previous ¥4,300. This upgrade comes after the company's fiscal year 2024 results, reported on May 10, surpassed its own operational performance guidance.
The firm's analysis indicates that while Kokusai Electric's fiscal year 2025 guidance is just shy of market consensus, there is an expectation of significant growth by fiscal year 2026. This optimism is rooted in a projected recovery in memory investment and the company's consistent acquisition of logic and gate-all-around (GAA) process of record (POR) acquisition.
Jefferies' new price target reflects confidence in Kokusai Electric's growth trajectory, suggesting a potential upside from the company's current market valuation. The revised price target of ¥5,300 represents a notable increase, indicating Jefferies' belief in the company's future performance.
The analyst's commentary underscores the potential for Kokusai Electric to outperform the wafer fabrication equipment (WFE) market, driven by a rebound in memory investment. This sector-specific recovery is seen as a key factor in the company's anticipated growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.