Goldman Sachs upgrades Aisin Seiki stock rating to Neutral on hybrid sales

Published 31/07/2025, 13:46
Goldman Sachs upgrades Aisin Seiki stock rating to Neutral on hybrid sales

Investing.com - Goldman Sachs has upgraded Aisin Seiki Co Ltd . (7259:JP) (OTC:ASEKY), a $10.6 billion market cap auto components manufacturer, from Sell to Neutral and raised its price target to JPY2,000.00 from JPY1,600.00. The stock has delivered an impressive 34% return year-to-date and is currently trading near its 52-week high.

The upgrade reflects a slowdown in battery electric vehicle (BEV) sales alongside accelerating hybrid electric vehicle (HEV) sales, which benefits Aisin Seiki’s business outlook.

Goldman Sachs has increased its operating profit estimates for FY3/26-FY3/28 by 6%/6%/5%, citing easing environmental regulations and the resolution of US tariff negotiations as key factors.

The firm’s new FY3/26 operating profit estimate of ¥212 billion now aligns with the IFIS consensus of ¥215 billion, while the target price increase also reflects a valuation base year roll-forward from FY3/26 to FY3/27.

Goldman Sachs noted that concerns about Aisin’s earnings deteriorating due to the shift to BEVs have diminished, supporting the rating change to Neutral.

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