Street Calls of the Week
Investing.com - UBS raised its price target on Shimadzu Corp (TYO:7701) to JPY4,460.00 from JPY4,330.00 on Friday, while maintaining a Buy rating on the Japanese analytical and measuring instruments manufacturer.
The price target increase reflects UBS’s revised earnings forecasts, which account for expected benefits from new product launches scheduled for the second half of fiscal year 2026 and improving private-sector demand in China.
Shimadzu is accelerating its development cycle with plans to introduce new liquid chromatography (LC), gas chromatography (GC), and liquid chromatography-mass spectrometry (LCMS) products starting in the second half of the fiscal year.
UBS expects these new product introductions to support sales growth and margin improvement for the company, which remains the firm’s top pick in the sector.
The investment bank also noted positive momentum in Shimadzu’s China pharmaceutical and contract development and manufacturing organization (CDMO) operations, primarily due to increased licensing agreements with European and US companies.
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