Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - UBS initiated coverage on Fuji Seal International (7864:JP) with a Buy rating and a price target of JPY3,800.00 on Wednesday.
The Japanese company, which is the largest manufacturer of shrink labels, has begun improving its return on capital since the fiscal year ending March 2023, according to UBS.
The improvement follows a period of business selection and concentration, along with changes in capital policy, despite the company’s share price valuation currently sitting at its lowest level since listing.
UBS forecasts Fuji Seal’s return on equity to rise from 8.8% in fiscal year 2025 to 10% by fiscal year 2031, driven by growth investments and enhanced shareholder returns.
The research firm believes the market has not yet factored in the maintained or improved profitability potential of the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.