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Citi raised its price target on Rohm Co Ltd . (6963:JP) (OTC:ROHCY) to JPY2,000 from JPY1,800 while maintaining a Buy rating on the Japanese semiconductor manufacturer’s stock.
The price target increase reflects Citi’s slightly higher operating profit forecast for fiscal year ending March 2026, as well as growing optimism about Rohm’s recovery prospects from what is expected to be a bottom in fiscal 2025 performance.
Citi highlighted new business opportunities for Rohm in the artificial intelligence server space, with AI power semiconductors projected to begin contributing to the company’s sales around the second half of 2026.
The research firm expects Rohm to announce detailed plans for its production network reorganization at its upcoming first-half results, viewing this as a potential upside catalyst for the stock despite forecasting an operating loss for the April-June quarter.
Citi also noted the market’s positive reaction to Rohm’s cautious approach toward integrating Toshiba (OTC:TOSYY), with the company’s share price trending upward since its full-year results announcement despite near-term profit challenges.
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