Street Calls of the Week
Investing.com - Morgan Stanley downgraded Timee Inc (215A:JP) from Overweight to Equalweight on Wednesday, while lowering its price target to JPY1,800.00 from JPY2,300.00.
The downgrade reflects Morgan Stanley’s revised earnings forecast for Timee , with the firm’s F10/26 EPS estimate now at JPY57.7, down from the previous JPY74.3 projection.
Morgan Stanley applied a P/E multiple of 32x to its new earnings estimate, based on average valuations since the start of F10/25, when the company’s share price began to stabilize following F10/24 results.
The research firm cited challenges in Timee’s business transition as a key factor behind the downgrade, noting that while the shift from logistics-related dispatch work has progressed relatively smoothly, the company has faced greater difficulty transitioning from part-time work in the food service industry.
Morgan Stanley indicated that Timee’s ability to accelerate sales growth through upfront investments will likely be the primary driver of the company’s share price performance in the near term.
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