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Investing.com - Nomura/Instinet downgraded DIC Corp (TYO:4631) from Buy to Neutral with a price target of JPY3,700.00.
The downgrade follows a 15% rise in DIC’s share price since the release of April-June results, as investors responded positively to strong earnings and an increase in the minimum dividend per share level.
Nomura cited concerns about inventory adjustments for overseas pigment operations that began in the second half of 2025, noting the risk that these adjustments could continue through 2026.
The firm maintained its JPY3,700 price target, calculated by applying a price-to-earnings multiple of approximately 10.5x to its 2026 earnings per share forecast of JPY347.
Nomura indicated it would reassess the stock upon seeing growth in DIC’s chemitronics business, which includes epoxy resin operations, and earnings growth resulting from realignment in the ink market.
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