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CocaCola Bottlers Japan shares plunge as domestic brokerage downgrades on valuation concerns

Thu Apr 2, 2026 2:27 pm JST Catalyst

Coca-Cola Bottlers Japan Holdings Inc. <2579> fell sharply. SMBC Nikko Securities downgraded the company's investment rating on the 1st from "1," the highest on its three-tier scale, to "2," the middle tier. The brokerage raised its target price to \3,700 from \2,600. The firm expects the company to continue delivering top-tier shareholder returns within the sector and to achieve ROE improvement through profit growth. While acknowledging the company's high management quality, SMBC Nikko noted that the stock's price-to-book ratio has risen to nearly 2x following the recent rally, and the current share price already reflects expectations for shareholder returns and achievement of this fiscal year's guidance. The brokerage stated that further valuation gains would require increased confidence in the company's ability to meet targets for the next fiscal year and beyond.

Source: MINKABU PRESS

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