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Investing.com - Goldman Sachs has upgraded Kubota Corp (TYO:6326) (OTC:KUBTY) from Neutral to Buy, raising its price target to JPY2,100.00 from JPY1,600.00 following strong quarterly results.
The Japanese agricultural and construction equipment manufacturer reported second-quarter operating profits of ¥81.4 billion for the period ending June 2025, significantly exceeding Goldman Sachs’ estimate of ¥60.0 billion and the I/B/E/S consensus estimate of ¥68.0 billion.
While sales came in 1% below Goldman Sachs’ estimate, Kubota’s profitability surpassed expectations, primarily due to lower sales incentives and price increases in North America.
Goldman Sachs noted that Kubota revised its sales finance program for certain equipment types in March, viewing the effective price hikes amid weak demand as evidence of the company’s previously announced shift toward prioritizing profitability.
The investment bank also highlighted that despite reducing incentives, Kubota continues to focus on market share, planning to introduce more cost-competitive products made in India for the compact tractor market.
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