In a report released today, Shinichiro Nakamura from Bank of America Securities maintained a Hold rating on Mitsubishi UFJ Financial Group, with a price target of Yen2,450.00.
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Shinichiro Nakamura’s rating is based on several factors related to Mitsubishi UFJ Financial Group’s current financial outlook and strategic plans. The company’s revised net profit guidance and share buyback plan appear conservative, and there is uncertainty regarding the timeline for achieving its long-term return on equity (ROE) target of 12%. Although the bank achieved a 12.5% ROE in the first half of the fiscal year, this includes equity gains, and the management aims to reach the 12% target without relying on such gains.
Additionally, the bank’s exposure to U.S. private credit and data center investments poses certain risks, although MUFG believes these are well-managed. The bank’s strategy to mitigate risks includes focusing on its Originate & Distribute business model and collaborating with Morgan Stanley. Furthermore, while there is potential to raise the Common Equity Tier 1 (CET1) ratio target in the future, the immediate priority remains achieving the long-term ROE goal. These factors contribute to the Hold rating as the bank’s future performance hinges on strategic execution and market conditions.
According to TipRanks, Nakamura is a 4-star analyst with an average return of 17.1% and a 70.00% success rate. Nakamura covers the Financial sector, focusing on stocks such as Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and SBI Sumishin Net Bank Ltd.