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On Thursday, UBS analysts downgraded Makino Milling Machine Co Ltd (TYO:6135) stock to Neutral from Buy. The decision comes as the stock’s price rose following an investment fund’s announcement of a planned tender offer. The analysts set a new price target of ¥12,300, up from ¥10,700.
An investment fund revealed its intention to commence a tender offer for Makino shares at a price of ¥11,751 per share. This announcement was made at 10:00 p.m. on Monday. The fund plans to initiate the tender offer by early December 2025, pending regulatory approvals related to anti-monopoly laws.
Makino has agreed to the tender offer and is recommending that its shareholders participate. The company cited the tender offer price as favorable for minority shareholders and noted the investment fund’s successful track record in enhancing the value of a South Korean machine tool manufacturer.
UBS analysts noted that while they maintain their earnings forecasts, the stock’s recent price increase has reduced its upside potential, leading to the rating downgrade. They emphasized that the tender offer has influenced the stock’s valuation.
The investment fund’s strategy to enhance shareholder value was highlighted by Makino as a key reason for its endorsement of the tender offer.
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