Street Calls of the Week
Investing.com - UBS has upgraded Taiyo Nippon Sanso Corp (TYO:4091) from Neutral to Buy while slightly raising its price target to JPY5,600.00 from JPY5,580.00.
The upgrade comes as UBS revised its FY3/26 core operating profit forecast upward by 2%, citing expected volume growth for semiconductor-use specialty gas and adjusted forex assumptions to reflect a weaker yen (from ¥145/$ and ¥160/€ to ¥150/$ and ¥170/€).
UBS notes that each ¥1 depreciation against the dollar and euro adds approximately ¥0.4 billion and ¥0.35 billion to core operating profit, respectively, creating a favorable financial outlook for the company.
The firm highlights that Taiyo Nippon Sanso’s business environment has improved over the past three months due to declining energy prices, while stable industrial gas demand is expected to attract increased investor attention.
UBS identifies the company’s upcoming Q2 (July-September) results as a potential catalyst for share price appreciation, suggesting the possibility of an upward revision to full-year guidance, while noting the stock has declined 23% relative to the TOPIX index over the past six months.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.