Bubble or no bubble, this is the best stock for AI exposure: analyst
Investing.com - Morgan Stanley has initiated coverage on Kraftia Corp (TYO:1959) (OTC:KYDKF) with an Overweight rating and a price target of JPY8,500.00.
The investment bank cited favorable business conditions for electrical engineering companies like Kraftia, noting that supply-demand dynamics remain tight in electrical engineering and HVAC/sanitary facility works.
Morgan Stanley highlighted strong factory, data center, and redevelopment demand coupled with supply limitations as key factors supporting the company’s outlook.
The firm expects Kraftia’s gross margins to continue trending upward, particularly in electrical engineering and HVAC/sanitary facility segments, driving consecutive new operating profit peaks from fiscal year ending March 2026.
Morgan Stanley is closely monitoring demand growth in Kyushu related to increasing data center capital expenditures, suggesting the stock may attract more thematic interest as data center orders grow.
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