Jefferies upgrades Kawasaki Heavy stock rating on reduced macro risks

Published 24/06/2025, 09:32
Jefferies upgrades Kawasaki Heavy stock rating on reduced macro risks

Investing.com - Jefferies upgraded Kawasaki Heavy Industries, Ltd (TYO:7012) (OTC:KWHIY) stock rating from Hold to Buy on Tuesday, while significantly raising its price target to JPY12,800.00 from JPY7,900.00.

The upgrade reflects Jefferies’ revised forecast that incorporates both direct and indirect tariff impacts on Kawasaki’s consumer-focused Powersports business, suggesting reduced exposure to macroeconomic risks beginning in fiscal year 2026.

Jefferies highlighted the sustained long-term profit growth potential of Kawasaki’s defense business as a key factor that will likely lead to further market re-rating of the stock.

The investment firm noted the possibility of a transformation in Kawasaki Heavy Industries’ business model, driven primarily by the defense segment’s performance.

The new price target of JPY12,800.00 represents over 20% upside potential from the current share price, according to Jefferies analyst Sho Fukuhara’s research note.

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