J FRONT RETAILING Co (JFROF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Sho Kawano from Goldman Sachs downgraded the rating on the stock to a Hold and gave it a Yen2,000.00 price target.
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Sho Kawano has given his Hold rating due to a combination of factors influencing J FRONT RETAILING Co’s stock. The recent increase in the company’s share price has brought it close to what is considered its fair market value, prompting a reassessment of its potential for growth. Despite previously strong sales to affluent domestic customers, there are indications that this trend is beginning to slow, as evidenced by sales data up to mid-June.
Sho Kawano also anticipates that the company will not meet its fiscal year 2026 guidance. Additionally, the upcoming large-scale renovation expenses projected for fiscal year 2027 have led to a downward revision of earnings estimates. Consequently, the 12-month target price has been adjusted to ¥2,000, reflecting these new earnings projections and an updated equity risk premium. These factors collectively support the decision to downgrade the stock from a Buy to a Neutral rating.