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Investing.com - JPMorgan has initiated coverage on Hirose Electric (TYO:6806) (OTC:HRSEF) with an Overweight rating and a price target of JPY24,500.00 through December 2026.
The investment bank views Hirose Electric’s relatively stable earnings growth as reassuring amid ongoing post-COVID inventory adjustments in the electronic components sector, particularly in automotive and industrial applications.
JPMorgan expects sustained growth in Return on Invested Capital (ROIC) for the company, driven by continued improvement in invested capital turnover.
The firm anticipates steady earnings improvement for Hirose Electric, alongside a decline in the cash turnover period.
These positive developments are expected to result from better cash management and shareholder returns, according to JPMorgan’s analysis.
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