JPMorgan starts Kakaku.com coverage with Neutral, sets JPY2,800 target

Published 24/04/2025, 11:40
JPMorgan starts Kakaku.com coverage with Neutral, sets JPY2,800 target

On Thursday, JPMorgan initiated coverage on Kakaku.com Inc. (2371:JP) (OTC:KKKUF), assigning a Neutral rating to the company’s stock along with a price target of JPY2,800.00. This valuation comes as Kakaku.com, known for its price comparison website, continues to see stable growth across its key business segments.

Kakaku.com’s sustained performance is attributed to the spread of internet reservation systems within the restaurant industry and the successful refinement of the company’s marketing approach. These factors have bolstered its three main businesses: Kakaku.com, Tabelog.com, and Kyujin Box. The market has responded favorably to the company’s consistent growth, as noted by the analysts.

Despite the positive outlook on the company’s main operations, JPMorgan expressed caution due to recent strategic decisions by Kakaku.com. In March 2025, the company unveiled a medium-term plan that includes a significant increase in investment in Kyujin Box, its job listing service. This move is seen as a response to the evolving Japanese recruitment market, particularly after Recruit Holdings (TYO:6098) introduced its Indeed PLUS job-placement service in January 2024.

JPMorgan acknowledges the strength of Kakaku.com’s core businesses and views the decision to enhance Kyujin Box positively. Nevertheless, the firm also recognizes the competitive pressure from rivals and suggests there may be risks associated with a potentially extended timeline for the return on these new investments. The analysts believe that while Kakaku.com is making a strategic move to bolster one of its services, it is also entering a period where the outcomes of these investments are not yet certain.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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