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FUJI ELECTRIC shares edge lower as major domestic brokerage maintains top investment rating
FUJI ELECTRIC CO., LTD. <6504> edged lower. SMBC Nikko Securities maintained its investment rating of "1" (the highest on a three-tier scale) for the company's shares on the 23rd. The brokerage also kept its target price at 13,700 yen. The company's stock has underperformed compared to other major heavy electrical equipment manufacturers covered by the brokerage. This is attributed to factors including "relatively limited benefits from the U.S. data center market at present compared to other power equipment stocks" and "the company's stance has not been clarified amid growing momentum for industry consolidation in the domestic power semiconductor sector." However, the brokerage expects sales of products for U.S. data centers in the energy business to begin from the fiscal year ending March 2027, and notes that awareness of improving capital efficiency is gradually increasing. The brokerage sees significant potential for share price re-evaluation over the medium to long term.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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