Bernstein analyst Harry Martin has maintained their bullish stance on BRDCF stock, giving a Buy rating yesterday.
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Harry Martin’s rating is based on Bridgestone’s strong performance in the second quarter, where it exceeded margin expectations while its global competitors fell short. This performance has strengthened confidence in the company’s ability to expand margins beyond market consensus. The company is projected to deliver a 7% increase in share price along with significant cash returns, making it an attractive investment on a long-term basis as it benefits from premiumization strategies.
Bridgestone’s strategic advancements, particularly in the Truck/Bus and Specialty segment margins, have outperformed competitors like Michelin, demonstrating the effectiveness of its restructuring efforts. The company has also seen growth in strategic areas such as premium tires in Europe and mining tires. Despite challenges in Brazil, chemicals, and diversified sectors, Bridgestone’s guidance remains achievable, supported by lower tariff impacts and increased restructuring benefits. The company’s confidence in its U.S. market position and potential for share growth further supports the Buy rating.
In another report released yesterday, CLSA also maintained a Buy rating on the stock with a Yen7,200.00 price target.