Mitsubishi Electric stock rating downgraded to Hold by CLSA despite higher price target

Published 04/08/2025, 19:48
Mitsubishi Electric stock rating downgraded to Hold by CLSA despite higher price target

Investing.com - CLSA downgraded Mitsubishi Electric (TYO:6503) (OTC:MIELY) from Outperform to Hold on Monday, while simultaneously raising its price target to JPY3,650.00 from JPY3,100.00.

The rating change follows a significant 26% increase in Mitsubishi Electric’s share price over the past three months, which has reduced the potential upside despite CLSA’s more optimistic price target.

CLSA analyst Morten Paulsen indicated that while consensus forecasts for Mitsubishi Electric remain "too low," the stock’s valuation multiples have expanded considerably during the recent rally.

The research firm maintained its positive view on Mitsubishi Electric’s product portfolio, noting it should trade at higher multiples than it has historically.

The new price target of JPY3,650.00 represents an increase of approximately 17.7% from the previous target of JPY3,100.00, reflecting CLSA’s continued confidence in the company’s fundamentals despite the downgrade.

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