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SMS falls for fifth consecutive day after major domestic brokerage downgrades to neutral

Thu May 7, 2026 1:33 pm JST Catalyst

SMS Co., Ltd. <2175> fell for a fifth consecutive day. On the 1st, Nomura Securities downgraded the company's rating from "Buy," the highest of three levels, to "Neutral," the middle tier. The target price was revised from 2,240 yen to 1,900 yen. While the company operates staffing services for the nursing care and healthcare industries, the brokerage revised downward its operating profit forecast for the fiscal year ending March 2027, taking into account that the company will be in a period of upfront investment for medium- to long-term growth, actively ramping up hiring and AI investment. The brokerage noted that the company is currently in a transitional phase where it is necessary to assess the results of these upfront investments, and sees that the stock's valuation appeal has diminished.

Source: MINKABU PRESS

*Translated by generative AI. Click here for the original article.

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