Street Calls of the Week
Investing.com - JPMorgan has initiated coverage on Wacom Co Ltd (TYO:6727) with an Overweight rating and a price target of JPY1,200.00, targeting the end of December 2026.
The investment bank expects Wacom’s technology solution business to see year-over-year revenue and profit declines in fiscal year 2025, though it anticipates the segment will maintain stability despite the projected decrease.
JPMorgan notes that Wacom’s brand business has already shown significant improvement, returning to profitability in the first quarter of fiscal year 2025 for the first time in ten consecutive quarters, largely due to fixed-cost reductions implemented in fiscal year 2024.
The research firm projects that the brand business will remain profitable throughout fiscal year 2025, representing a substantial turnaround for this segment of Wacom’s operations.
JPMorgan cites limited downside risk to earnings and a relatively low sector-relative valuation as key factors supporting its Overweight rating on the Japanese digital pen tablet manufacturer.
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