On Wednesday, BofA Securities raised its stance on Daikin Industries Ltd. shares, upgrading the company from Neutral to Buy. The firm also increased the price target to ¥30,000 from the previous ¥25,000. The adjustment comes after a period where Daikin's performance lagged behind the Topix Machinery Index by 32%.
The upgrade reflects a more optimistic view of Daikin's prospects, bolstered by industry data that suggests an improving outlook for the company. BofA Securities anticipates that Daikin's shares will continue to experience upward momentum in light of these developments.
The firm's forecast for Daikin's operating profit (OP) for the fiscal year ending March 2025 is set at approximately ¥430.9 billion. This projection slightly surpasses the Consensus of Estimates (CoE), which is at ¥425 billion, indicating a positive expectation for the company's financial performance.
Daikin, which is listed on the Tokyo Stock Exchange under the ticker 6367:JP and over-the-counter in the United States as OTC: DKILY, has seen its stock price adjust to the shifting market sentiment following the analyst's comments.
In response to the upgrade, investors may keep a close eye on Daikin's stock performance in the upcoming trading sessions, as the market reacts to the new price target and the company's potential to outperform expectations in the next fiscal year.
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