Jefferies downgrades Nikon stock to Hold on profit decline and tariff impact

Published 01/09/2025, 10:10
Jefferies downgrades Nikon stock to Hold on profit decline and tariff impact

Investing.com - Jefferies downgraded Nikon Corp (TYO:7731) (OTC:NINOY) from Buy to Hold on Monday, maintaining a price target of JPY1,700.00 following the company’s disappointing quarterly results. The company, a prominent player in the Household Durables industry with a market capitalization of $3.7 billion, has shown strong momentum with a 14.6% return over the past week.

The Japanese camera and precision equipment maker reported an operating loss of ¥1.1 billion for the first quarter of fiscal year 2026, representing a ¥4.0 billion year-over-year decline, according to Jefferies. Despite the quarterly loss, InvestingPro data shows the company maintains a healthy financial position with a current ratio of 1.98 and moderate debt levels.

The downgrade follows Nikon’s August 7 earnings announcement, which revealed setbacks from yen appreciation and profit decline in the company’s imaging business due to a less favorable product mix.

Nikon has lowered its fiscal year 2026 guidance, including reducing its operating profit target to ¥15.0 billion, factoring in a ¥7.5 billion impact from tariffs.

Jefferies maintained its price target of ¥1,700, noting that Nikon’s current share price has reached this target, prompting the rating revision from Buy to Hold.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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