Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
Investing.com - BofA Securities downgraded Olympus Corporation (7733:JP) (OTC:OCPNY) from Buy to Neutral on Tuesday, while lowering its price target to JPY1,820.00 from JPY2,000.00.
The downgrade follows what BofA described as "worse-than-expected" first-quarter earnings results from the Japanese optical and medical equipment manufacturer.
BofA Securities analyst Ritsuo Watanabe reduced operating profit forecasts for Olympus through fiscal year 2030 by 5-14%, expressing concern that "even the revised full-year guidance could be challenging."
The new price target is based on an enterprise value to EBITDA multiple of 9x BofA’s fiscal year 2027 forecasts, maintaining the same multiple used in the previous valuation.
BofA noted that Olympus’s current share price represents an EV/EBITDA ratio of 8.6x their FY3/27 forecasts, which they consider "fair" as it falls within the three-year range of 7.3-13.7x.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.