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Investing.com - JPMorgan has upgraded Tsuruha Holdings Inc (TYO:3391) stock from Neutral to Overweight and raised its price target to JPY2,800 from JPY2,280, citing substantial growth potential and attractive valuations.
The upgrade follows Tsuruha’s first-quarter progress toward its fiscal year 2025 guidance and considers the upcoming share swap with Welcia Holdings scheduled for December 1, 2025.
JPMorgan’s revised estimates incorporate the expected JPY40 billion in integration synergies over the three years following the merger, which the firm believes will drive significant profitability improvements.
The new price target, which accounts for Tsuruha’s stock split on September 1, is based on a price-to-earnings ratio of approximately 18 times JPMorgan’s fiscal year 2027 earnings per share estimate.
This multiple aligns with the current average valuation of major drugstores covered by JPMorgan and reflects Tsuruha’s five-year historical average, according to the investment bank.
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