Street Calls of the Week
Investing.com - UBS upgraded Yaskawa Electric (TYO:6506) (OTC:YASKY) from Neutral to Buy on Friday, while significantly raising its price target to JPY5,000 from JPY3,380.
The Japanese industrial automation company is benefiting from solid demand in its robotics segment and showing signs of recovery in its inverter business in North America, according to UBS.
The firm also noted improving demand for Yaskawa’s AC servo motors in the semiconductor industry, supporting expectations for continued earnings recovery.
UBS believes current valuations do not fully reflect Yaskawa’s potential earnings growth, suggesting room for multiple expansion as the company continues to strengthen its financial performance.
The upgrade highlights Yaskawa’s leadership position in AI robot development as particularly attractive, with UBS identifying semiconductor demand recovery and AI robot initiatives as potential catalysts for share price appreciation.
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