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Investing.com - Jefferies downgraded UACJ Corp (TYO:5741) from Buy to Hold while raising its price target to JPY6,300.00 from JPY5,500.00 following the company’s Q1 FY3/26 earnings report.
The research firm expects earnings upside from widening margins between U.S. aluminum prices versus UBC (used beverage can) costs, according to its analysis.
Jefferies also noted that ASP (average selling price) hikes should support profits in Japan for the aluminum products manufacturer.
Despite the positive earnings outlook, Jefferies believes the recent steep rally in UACJ’s share price limits further upside potential, prompting the downgrade to Hold.
The firm identified several potential risks for UACJ, including trade tariffs, cross-shareholding unwinds, and equity issuance.
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