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Investing.com - JPMorgan has initiated coverage on TDK Corp . (TYO:6762) (OTC:TTDKY) with an Overweight rating and a price target of JPY2,070.00 through December 2026.
The investment bank expects TDK’s profitability to improve, primarily driven by the company’s rechargeable batteries that offer "strong stability and high profitability."
JPMorgan also cites strengthening business portfolio management for unprofitable operations as a contributing factor to the positive outlook.
The firm points to several favorable factors in its analysis, including expectations for steady improvement in Return on Invested Capital (ROIC) and strengthening free cash flow generation capacity.
JPMorgan also considers TDK shares "undervalued in relative terms," supporting its bullish stance on the electronic components manufacturer.
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