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Tuesday, Asahi Intecc Co. Ltd. (7747:JP) (OTC:AHICF) shares received an upgrade from Jefferies analysts, moving from a Hold to a Buy rating, with a price target set at JPY2,600.00. The upgrade was influenced by the potential competitive advantage Asahi could gain in the Chinese market due to tariffs imposed by China on US goods.
The Jefferies analysts believe these tariffs may enable Asahi Intecc to capture market share from American competitors in China. This could help to balance out the adverse effects of US tariffs and the strengthening of the yen against other currencies. In light of this, Jefferies has modestly increased their earnings estimates for the company.
The new price target of JPY2,600.00 suggests that there is a potential upside of 19% for Asahi Intecc shares. The analysts at Jefferies are confident that the company’s position in the market will strengthen, leading to their decision to upgrade the rating to Buy from the previous Hold status.
The optimism from Jefferies hinges on the expectation that Asahi Intecc will benefit from the current trade dynamics, potentially boosting its performance in the competitive medical device sector, specifically within the burgeoning Chinese market.
The analyst’s statement highlighted the strategic advantage Asahi Intecc could leverage, as the tariffs on US goods may present an opportunity for the company to outperform its American rivals in China. This development is seen as a significant factor in the improved outlook for Asahi Intecc’s stock.
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