Nomura upgrades Resonac stock to Buy on semiconductor materials growth

Published 17/09/2025, 09:16
Nomura upgrades Resonac stock to Buy on semiconductor materials growth

Investing.com - Nomura/Instinet upgraded Resonac Holdings Corp (TYO:4004) (OTC:SHWDY), a $5.7 billion market cap chemicals company, from Neutral to Buy and raised its price target to JPY5,400.00 from JPY3,300.00. According to InvestingPro data, the stock is trading near its 52-week high with strong momentum across multiple timeframes.

The upgrade reflects better-than-expected sales of electronic materials for commodity semiconductors following inventory adjustments, as well as improved margins on graphite electrodes due to industry-wide production capacity reductions.

Nomura expects growth in Resonac’s semiconductor materials business for both advanced products like copper-clad laminates for AI applications and commodity products such as CMP slurry for DRAM, partly due to DRAM inventory corrections.

The research firm also noted earnings improvements in Resonac’s graphite electrode business, attributing the gains to fixed cost savings and industry-wide production capacity reductions, including at Resonac Holdings.

Based on these factors, Nomura has raised its forecasts for Resonac’s core operating profits and EBITDA for the period beginning December 2025.

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