JPMorgan initiates Food & Life Companies stock with Overweight rating

Published 25/07/2025, 11:30
JPMorgan initiates Food & Life Companies stock with Overweight rating

Investing.com - JPMorgan has initiated coverage on Food & Life Companies (3563:JP) with an Overweight rating and a price target of JPY8,500.00.

The investment bank expects the company’s operating profit to grow at a compound annual growth rate (CAGR) of 23% over the next four years, according to its research note.

JPMorgan identified International Sushiro as the main growth driver, noting the company is expected to further expand its store network by leveraging its "value-for-money and entertaining dining experience."

The price target of JPY8,500 is based on a price-to-earnings (P/E) ratio of 40x applied to the average of JPMorgan’s earnings per share estimates for fiscal years ending September 2025 and September 2026.

This multiple exceeds the historical five-year average of 29x, but JPMorgan believes Food & Life Companies "remains undervalued relative to the sector" based on its outlook for high profit growth and the appeal of shareholder benefits to retail investors.

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