JX Advanced Metals stock upgraded to Buy at Nomura on AI server demand

Published 25/08/2025, 07:40
JX Advanced Metals stock upgraded to Buy at Nomura on AI server demand

Investing.com - Nomura/Instinet upgraded JX Advanced Metals (5016:JP) from Neutral to Buy and raised its price target to JPY1,320.00 from JPY850.00, citing stronger-than-expected demand in the company’s semiconductor business.

The upgrade follows JX Advanced Metals’ Q1 results, which revealed stronger-than-anticipated advanced logic demand in the company’s semiconductor target operations and increased usage of tantalum powder in AI servers.

Nomura noted that rising demand for AI servers has improved growth prospects for JX Advanced Metals’ focus businesses, particularly in semiconductor materials and ICT materials segments, where the company maintains a high global market share.

The research firm raised its operating profit forecast for fiscal year 2026/27, projecting continued profit growth from increased sales of AI server-related products and benefits from restructuring efforts.

JX Advanced Metals currently trades at a P/E of 12.6x, in line with the 12.4x average for basic materials companies under Nomura’s coverage, with the new price target representing a 27/3 EPS forecast multiplied by a target P/E of 14.6x using a sum-of-the-parts methodology.

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