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IHI rebounds as major domestic brokerage upgrades investment rating to top tier

Tue Sep 1, 2026 9:58 am JST Catalyst

IHI Corporation <7013> rebounded after SMBC Nikko Securities upgraded its rating on the company to "1," the highest of three tiers, from "2," effective Aug. 31.

The brokerage cited resilient spare parts demand, which has stayed solid with limited impact from Middle East tensions, and lowered its discount rate to 10% from 20%. While maintaining a price-to-earnings ratio of 26x, SMBC Nikko raised its target price to 3,800 yen from 2,900 yen.

The brokerage also raised its operating profit forecast for IHI's fiscal year ending March 2028 to 232.8 billion yen from 199.6 billion yen.

Source: MINKABU PRESS

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