On Thursday, Oriental Land Co (OTC:OLCLY) Ltd (4661:JP) (OTC: OLCLY) shares saw its price target lowered by Jefferies to ¥4,500 from the previous ¥4,600, while the firm maintained a Hold rating on the stock. The adjustment follows a reassessment of the company's earnings estimates.
The revised price target comes as the analyst forecasts a first-quarter operating profit of ¥37.2 billion, a 4% decrease year-over-year, but slightly above the consensus of ¥35.7 billion.
The report suggests that the attendance boost from the new Fantasy Springs attraction is meeting expectations and that increased pricing is likely to take effect from the second quarter onward.
Despite these factors, Jefferies advises caution, citing a valuation that seems stretched. The firm also notes the potential negative impacts of the summer heatwave on the company's performance, which could affect visitor numbers and, consequently, revenue.
Jefferies' outlook on Oriental Land remains neutral, with the Hold rating unchanged. The slight decrease in the price target reflects a careful consideration of both potential growth opportunities and the risks posed by external factors such as weather conditions. The company's forthcoming financial results and the market's response to the new pricing strategy will likely be closely monitored by investors.
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