Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Jefferies raised its price target on Komatsu (TYO:6301) (OTC:KMTUY) to JPY5,100 from JPY4,800 while maintaining a Hold rating on the Japanese heavy equipment manufacturer. The company, a prominent player in the Machinery industry with a market cap of $32.2 billion, has demonstrated strong performance with a 29.7% year-to-date return. According to InvestingPro analysis, Komatsu maintains a "GREAT" financial health score of 3.26.
The research firm cited management’s outlook that sales in Indonesia for fiscal year 2026 would fall short of expectations, primarily due to government policy rather than structural market headwinds.
Beyond fiscal year 2026, Komatsu management anticipates sustained sales growth for its mining machinery segment, while expecting limited sales expansion in its non-mining equipment business.
Jefferies noted that anticipated interest rate cuts in the United States may provide near-term support for Komatsu’s share price performance.
Despite the higher price target, the firm expressed caution regarding potential downside risks to consensus profit estimates for the heavy equipment manufacturer.
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