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Investing.com - JPMorgan has upgraded Mitsubishi UFJ Financial Group Inc (NYSE:MUFG) from Neutral to Overweight while raising its price target to JPY2,910.00 from JPY2,700.00. MUFG shares currently trade at $15.81, just below their 52-week high of $16.23, with impressive returns of 37% year-to-date and nearly 39% over the past year.
The investment bank increased its net profit estimates for the Japanese financial giant by 2% for FY2025, 11% for FY2026, and 9% for FY2027, citing several positive factors influencing the outlook.
JPMorgan’s revised forecasts incorporate updated earnings estimates for Morgan Stanley, in which Mitsubishi UFJ holds a significant stake, and the firm’s revised house view that the yen will be weaker than previously assumed in 2026 (¥150/$, previously ¥139/$).
Japan’s strong stock market performance as of end-September also factored into the upgrade, along with a more optimistic view of MUFG’s fee income business growth potential.
JPMorgan believes fee income and leverage will be the most important themes for Japan bank stocks in 2026, rather than net interest income, noting that "the credibility of MUFG’s fee income growth is high." With a P/E ratio of 21.6, MUFG appears to be trading above its Fair Value according to InvestingPro analysis, which offers additional insights and a comprehensive Pro Research Report on this prominent banking industry player.
In other recent news, Mitsubishi UFJ Financial Group announced the successful closing of a $750 million senior secured revolving credit facility for Willis Mitsui & Co. Engine Support Limited. This marks the first revolving credit facility for the joint venture between Willis Lease Finance Corporation and Mitsui & Co., Ltd. Mitsubishi UFJ served multiple roles in the transaction, including Structuring Agent and Administrative Agent. Additionally, Mitsubishi UFJ, along with JPMorgan Chase, is leading a significant $38 billion debt package intended to fund data centers for Oracle Corporation in Wisconsin and Texas. This financing includes a previously committed $23 billion loan for a campus in Shackelford County, Texas. These developments reflect Mitsubishi UFJ’s active role in major financial transactions.
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