HOYA’s Strong Segment Performance and Strategic Initiatives Justify Buy Rating Despite Revenue Miss

Analyst David Dai CFA of Bernstein reiterated a Buy rating on HOYA (HOCPF – Research Report), retaining the price target of Yen25,000.00.

David Dai CFA has given his Buy rating due to a combination of factors including HOYA’s strong performance in its IT and Life Care segments. Despite a slight revenue miss, the company’s operating profit showed significant growth, with margins exceeding expectations. The Life Care segment, in particular, saw a rebound in margins to 20% after promotional activities ended, and the eyeglass lens segment experienced notable growth in emerging markets and Japan.
Furthermore, the IT segment demonstrated impressive year-over-year growth in both revenue and operating profit, surpassing estimates. Although there were challenges in the Chinese market, other regions showed robust performance, contributing to the overall positive outlook. The company’s strategic initiatives, such as the launch of new products in the Miyosmart line, are expected to drive future growth, supporting the Buy rating.

In another report released on April 15, Jefferies also maintained a Buy rating on the stock with a Yen20,000.00 price target.