Citi has updated its outlook on Miura Co Ltd (6005:JP), a leading Japanese industrial company specializing in boiler manufacturing and related services.
The firm increased its price target on the company's stock to JPY 4,400 from JPY 4,300, while maintaining a Buy rating.
The adjustment follows Miura's first-quarter earnings report and the recent consolidation of Cleaver-Brooks, a U.S.-based boiler manufacturer acquired by Miura.
Citi's analyst noted that the revised earnings estimates are based on these recent developments, which are expected to influence the company's financials positively.
While the fiscal year ending March 2026 remains the base valuation year for Miura's stock, Citi has adjusted the fair value price-earnings ratio (PER) to 18 times from the previous 20 times.
The change reflects the broader decline in market multiples, yet still results in a slight increase in the target price for Miura's shares.
Citi has also initiated a 90-day positive Catalyst Watch on Miura, anticipating potential upward revisions to guidance when second-quarter results are released. The firm also expects more detailed disclosure on the synergies from the Cleaver-Brooks acquisition in the upcoming follow-up briefing.
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