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Investing.com - Jefferies has downgraded CKD Corp (TYO:6407) from Buy to Hold, while lowering its price target to JPY2,600.00 from JPY3,000.00.
The downgrade comes despite CKD being one of the best performers against the TOPIX index within Jefferies’ coverage, which the firm attributes to positive market sentiment surrounding the semiconductor sector.
Jefferies believes CKD will continue to gain market share with both U.S. and Chinese semiconductor equipment manufacturers, suggesting some positive business fundamentals remain intact.
The firm’s decision to downgrade stems from its assessment that the new price target, which reflects the recent business environment, now offers limited upside potential for investors.
Jefferies made the rating change ahead of CKD’s April-June quarterly results, which the research firm expects to be weak, suggesting near-term performance concerns factored into the downgrade decision.
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