Harmonic Drive Systems (HSYDF – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Jay Huang from Bernstein maintained a Buy rating on the stock and has a Yen5,600.00 price target.
Jay Huang has given his Buy rating due to a combination of factors that highlight Harmonic Drive Systems as a promising investment opportunity. The company is positioned as a rare beneficiary in the emerging humanoid robot market, with a strong fundamental case supporting its growth prospects. Huang forecasts that a significant portion of Harmonic Drive’s business will be driven by humanoid robots, with expectations that this segment could account for one-third of the company’s operations by 2031 and two-thirds by 2036.
Huang’s analysis suggests that the humanoid robot market will experience substantial growth, with unit shipments projected to reach one million by 2031 and fifty million by 2050. Despite facing competition and a declining market share in strainwave reducers, Harmonic Drive is expected to maintain a niche in the premium segment. The company’s long-term operating margin is anticipated to be comparable to automotive components, and its earnings per share are projected to grow at a compound annual growth rate of 24% from 2031 to 2036. These factors, combined with a target price of JPY 5,600, support Huang’s Buy rating.