On Friday, Jefferies, a global investment banking firm, adjusted its price target for Dowa Holdings Co Ltd (5714:JP) shares, a Japanese non-ferrous metals company. The new price target is set at JPY6,000.00, an increase from the previous target of JPY5,600.00. Despite this change, the firm maintained its Hold rating on the stock.
The revision reflects positive developments in the company's performance, particularly in the second half of the year. Jefferies noted a steady recovery in demand for electronics and automobiles, which are key sectors for Dowa Holdings. This uptrend is anticipated to continue into the fiscal year ending March 2025.
Furthermore, the potential sale of a stake in Fujita Kanko (9722 JP), a Japanese hotel and resort operator, was highlighted as a favorable move for Dowa Holdings, should it come to fruition. However, details regarding the timing and the allocation of the proceeds from such a sale remain uncertain at this point.
Jefferies expressed optimism regarding the company's future, especially in terms of shareholder return improvements. Nevertheless, the firm anticipates more definitive information to emerge at the next Medium-Term Plan, which is expected for the fiscal year starting April 2026. Until then, Jefferies advises a neutral stance on Dowa Holdings shares.
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