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Investing.com - Goldman Sachs downgraded Yamaha Motor (7272:JP) (OTC:YAMHF) stock rating from Buy to Neutral and reduced its price target to JPY1,050.00 from JPY1,250.00.
The downgrade follows Yamaha Motor’s significant reduction in its FY12/25 operating profit guidance, which was cut from ¥230 billion to ¥120 billion in its second-quarter results announcement.
By segment, the company lowered guidance for marine products from ¥91 billion to ¥58 billion, motorcycles from ¥131 billion to ¥104 billion, and outdoor land vehicles (OLVs), including recreational off-highway vehicles (ROVs), from -¥11 billion to -¥33 billion.
Goldman Sachs noted that while earnings in Yamaha’s core motorcycle segment remain firm, the firm has lowered its earnings estimates for marine products and ROVs based on the second-quarter results.
The investment bank’s new FY12/26 estimate for Yamaha Motor is 4% below the Bloomberg consensus, with Goldman Sachs also pointing to potential improved earnings outlooks for Japanese automakers relative to Yamaha following Japan-US tariff negotiations and environmental regulation easing in Europe and the US.
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