Jefferies lifts Panasonic stock rating to Buy, raises target

Published 31/03/2025, 06:58
Jefferies lifts Panasonic stock rating to Buy, raises target

On Monday, Jefferies analyst Atul (NSE:ATLP) Goyal upgraded Panasonic (OTC:PCRFY) Corp shares from Hold to Buy, significantly increasing the price target to JPY2,193 from JPY1,340. Goyal highlighted Panasonic’s renewed commitment to restructuring, noting the company’s disciplined approach to cost management, expansion in the hyperscaler battery business, and recent governance changes as key factors for the upgrade.

In his statement, Goyal acknowledged Panasonic’s historical inconsistencies and the challenges presented by its diversified portfolio. Despite these concerns, he expressed a belief that Panasonic’s current promises appear more achievable than in the past. The analyst’s optimism is also tied to the expectation that Panasonic will align with the Tokyo Stock Exchange reforms, indicating a potential for increased corporate governance and market compliance.

Goyal’s decision to upgrade Panasonic’s rating and raise the price target reflects a shift in perspective, choosing to set aside previous skepticism. This move suggests confidence in Panasonic’s strategic direction and its ability to capitalize on the growing demand for batteries, particularly in the context of the global push for electrification and renewable energy solutions.

The upgrade comes at a time when investors are closely monitoring corporate restructuring efforts and their impact on company performance. Panasonic’s focus on cost discipline and growth in strategic business areas such as battery production for hyperscale data centers may provide the company with a competitive edge in the evolving market landscape.

As Panasonic continues to navigate its restructuring process, the market will watch for signs of the company’s progress towards fulfilling its promises and the potential impact on its stock performance. Jefferies’ revised outlook for Panasonic is a notable development for investors considering the company’s future prospects.

In other recent news, Panasonic Corp has seen positive developments with significant upgrades from major financial institutions. Morgan Stanley (NYSE:MS) upgraded Panasonic’s stock rating from Equalweight to Overweight, raising the price target from JPY 1,500 to JPY 2,300. This upgrade is attributed to the initial measures of Panasonic’s Group Management Reform plan, expected to enhance profit and valuation multiples. Morgan Stanley analysts are optimistic about Panasonic’s potential for profit growth, focusing on the immediate future as the company embarks on its restructuring measures.

Similarly, Goldman Sachs upgraded Panasonic’s stock from Neutral to Buy, with a new price target of JPY 2,500, up from JPY 1,770. This decision follows Panasonic’s unveiling of a new management reform plan during its third-quarter earnings briefing. Goldman Sachs views the plan as a crucial step in potentially transforming Panasonic’s market position and financial performance. The analysts noted that Panasonic’s current low valuation presents an attractive opportunity for value investors.

Both Morgan Stanley and Goldman Sachs emphasize the importance of Panasonic’s strategic reforms in potentially reshaping market perceptions and improving financial outcomes. Investors may find these developments noteworthy as Panasonic progresses with its management changes.

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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