BofA warns Fed risks policy mistake with early rate cuts
Investing.com - Nomura/Instinet initiated coverage on Furuno Electric Co Ltd (6814:JP) with a Buy rating and a price target of JPY6,300.00 on Tuesday.
The Japanese electronics manufacturer, which specializes in marine equipment, has significantly improved its earnings structure in recent years according to the research firm’s analysis.
Nomura expects Furuno to benefit from increasing new ship completions and growing contributions from high-margin maintenance services as more vessels incorporate the company’s products.
The global volume of ships completed is projected to reach a new peak around 2030, driven by rising demand for replacement of aging vessels and ships meeting stricter environmental standards, according to Japan Maritime Center forecasts cited by Nomura.
The research firm forecasts an operating profit compound annual growth rate of approximately 9% for Furuno Electric between fiscal years 2027 and 2029, and considers a price-to-earnings ratio of around 16x appropriate, which is one standard deviation above the company’s 10-year average.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.