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Investing.com - Morgan Stanley (NYSE:MS) downgraded Welcia Holdings (3141:JP) from Overweight to Equalweight on Monday while raising its price target to JPY2,600.00 from JPY2,400.00.
The downgrade follows significant price appreciation in Welcia shares, which have gained 23% year-to-date in 2025 and outperformed the TOPIX index by 19%.
Morgan Stanley attributed the stock’s recent performance to market expectations surrounding the April 2025 announcement of a share exchange agreement for business integration with Tsuruha HD.
The investment bank believes Welcia’s current share price is supported by its planned status as a wholly owned subsidiary of Tsuruha HD and Aeon’s additional acquisition of Tsuruha HD shares at a planned price of ¥11,400 per share.
The downgrade reflects Morgan Stanley’s view that a series of capital measures between Welcia HD, Tsuruha HD, and Aeon are likely to be completed, creating a divergence between the firm’s new price target and Welcia’s current share price.
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