Nachi Fujikoshi (6474) – 29th January 2016(1,795Words)
Pressure: Downgrade Positive to Mixed
Summary: We have reduced our 11/16 OP estimate from Y22.7bn to Y20bn +6%YoY, & 11/17 OP from Y25bn to Y22bn +10%YoY. On 8x 11/17 earnings the stock’s multiple is inexpensive, but we are mindful that despite structural robotics growth Nachi Fujikoshi remains a cyclical business. We downgrade from Positive to Mixed.