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On Thursday, Macquarie analysts downgraded Minebea Mitsumi Inc. (6479:JP) (OTC:MNBEY) stock from an Outperform to a Neutral rating. The analysts also reduced the price target to ¥2,100 from ¥3,400, citing changes in market conditions and demand forecasts.
The analysts highlighted the previous upgrade in October 2024, which was based on increased demand for HDD-related products. They noted that motor sales, including HDD spindle motors, saw a 15% year-over-year growth, while pivot assembly sales increased by 42% year-over-year for the fiscal year ending March 2025.
However, in their latest note, Macquarie analysts significantly lowered their sales and operating profit forecasts for the fiscal years 2026 to 2028, specifically for the ball bearing and S&E (excluding Mitsumi) segments. They pointed out that expected sales growth in automotive, aircraft, and data center applications for ball bearings would not materialize as previously anticipated.
The analysts also mentioned that the appreciation of the yen contributes to the revised downward outlook compared to their earlier forecasts.
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