Goldman Sachs initiates Namura Shipbuilding stock with Buy rating

Published 24/06/2025, 09:16
Goldman Sachs initiates Namura Shipbuilding stock with Buy rating

Investing.com - Goldman Sachs initiated coverage on Namura Shipbuilding Co (TYO:7014) with a Buy rating and a price target of JPY3,700, representing 34% upside potential.

The Japanese shipbuilder, which focuses on commercial vessels and maintenance services, is positioned to benefit from improving market dynamics for non-Chinese shipbuilders, according to Goldman Sachs.

The investment bank forecasts Japanese shipbuilders’ market share to increase to 10% in 2025, 11% in 2026, and 12% in 2027, driven by improved cost competitiveness versus Chinese competitors following U.S. government announcements of port facility fee hikes on China-built ships.

Goldman Sachs projects Namura’s operating profit to grow at an 11% compound annual growth rate over fiscal years 2025-2030, primarily due to steady price improvements in its order book for new commercial vessels.

The JPY3,700 target price is based on a 1.7x price-to-book ratio applied to fiscal years 2029-2030 book value per share estimates, discounted at a 9.8% cost of equity.

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