Lisa Jiang, an analyst from Morgan Stanley, maintained the Hold rating on Makita Corporation. The associated price target is Yen4,400.00.
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Lisa Jiang’s rating is based on a combination of factors that suggest a cautious approach towards Makita Corporation’s stock. The company’s business environment has remained relatively stable, with growth in Japan and Europe primarily driven by gardening and power tools. However, this growth is from a low base, indicating a gradual recovery rather than a robust expansion. Additionally, Makita plans to increase its spending on personnel and promotions to maintain or grow its market share, which could impact profitability in the short term.
Moreover, while Makita does not foresee significant impacts from tariffs in the immediate future, it remains vigilant about the potential effects on its North American sales. The company is also considering shifting some production out of China to mitigate risks. In Russia, sales have significantly decreased due to geopolitical tensions, and although there might be a chance for recovery, competition from Chinese products poses a risk to regaining previous sales levels. These factors collectively contribute to the Hold rating, as they suggest a balanced outlook with both opportunities and challenges ahead.
In another report released on August 4, Citi also maintained a Hold rating on the stock with a Yen5,200.00 price target.