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Investing.com - JPMorgan has initiated coverage on Japanese semiconductor manufacturer Rohm Co Ltd. (TYO:6963) with a Neutral rating and a price target of JPY1,900.00 through December 2026.
The Tokyo-based chipmaker turned unprofitable in fiscal year 2024 as post-pandemic inventory adjustments continued while fixed costs increased due to significant investments in silicon carbide (SiC) device technology, according to JPMorgan’s analysis.
This combination of factors led to a sharp decline in Rohm’s share price, with the company’s stock performance reflecting the challenging market conditions and increased operational expenses.
JPMorgan noted that while Rohm maintains a high marginal profit ratio, uncertainty around the timing of a cyclical industry recovery has prompted the firm to adopt a cautious stance on the stock.
The investment bank believes the current share price already incorporates forecasted fiscal year 2026 performance improvements, suggesting the stock is appropriately valued with "no signs of undervaluation" at present levels.
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