On Wednesday, JPMorgan initiated coverage on Kikkoman Corp (2801:JP) stock, the leading global manufacturer of traditionally brewed soy sauce, with an Overweight rating and a price target of ¥2,100. The new coverage highlights Kikkoman's successful expansion and integration into international markets, which now account for a significant portion of the company's sales and business profit.
According to JPMorgan's analysis, Kikkoman has effectively developed its overseas business since the 1950s by adapting to local food cultures. This strategy has resulted in international sales contributing approximately 80% of the company's total sales and 90% of its business profit for the fiscal year 2023.
The firm's assessment points to Kikkoman's sustainable growth trajectory, bolstered by its high growth potential, profitability, and asset efficiency in foreign markets. JPMorgan's commentary suggests that these factors make Kikkoman an attractive investment opportunity.
The price target set for Kikkoman through December 2025 reflects the firm's confidence in the company's continued success and expansion. JPMorgan's optimistic outlook is based on Kikkoman's consistent performance and strategic approach to global market integration.
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