Elizabelle Pang, an analyst from DBS, maintained the Buy rating on DENSO (DNZOF – Research Report). The associated price target is Yen2,800.00.
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Elizabelle Pang’s rating is based on DENSO’s promising outlook and strategic initiatives. Despite a recent dip in profitability due to increased material costs, DENSO’s future prospects appear strong, with an expected improvement in EBIT margins supported by cost-cutting measures and growing demand for electrification and advanced driver-assistance systems (ADAS). The company’s guidance for the upcoming fiscal year suggests a significant margin recovery, surpassing market expectations.
Moreover, DENSO’s position as a leading Tier 1 automotive component manufacturer, particularly in xEV components, provides a competitive advantage. The company’s commitment to electrification and ADAS trends, along with its strategic partnerships and cost-sharing efforts with major clients like Toyota, further bolster its growth potential. Additionally, DENSO’s valuation appears attractive, trading at a lower forward PE compared to its historical average, making it a compelling buy opportunity.
According to TipRanks, Pang is a 3-star analyst with an average return of 1.0% and a 54.22% success rate. Pang covers the Consumer Cyclical sector, focusing on stocks such as Tesla, General Motors, and Mercedes-Benz Group.
In another report released on April 28, Macquarie also maintained a Buy rating on the stock with a Yen2,400.00 price target.