TSX runs higher on rate cut expectations
On Thursday, Jefferies analysts upgraded Mandom Corp. (4917:JP) (OTC:MDOMF) stock from Hold to Buy. This decision reflects optimism about the company’s performance, driven by price hikes in Japan’s men’s cosmetics market. The analysts also raised the price target for Mandom stock to ¥1,600 from ¥1,400.
The upgrade comes as Mandom benefits from increased prices in Japan, particularly in the men’s cosmetics sector. The company is also expanding its e-commerce and convenience store channels in Indonesia, which is expected to strengthen its business model further.
Jefferies analysts highlighted that the first quarter could act as a catalyst for Mandom’s stock performance. The revised price target of ¥1,600 is based on upward revisions to the earnings outlook, using a valuation of 6x EV/EBITDA, now based on the fiscal year ending March 2027 instead of March 2026.
The new valuation also equates to 18x price-to-earnings and 1.0x price-to-book ratios. Jefferies analysts believe investors are likely to focus on Mandom’s earnings level following recent reform measures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.