Shuhei Nakamura, an analyst from Goldman Sachs, has initiated a new Hold rating on Kioxia Holdings Corporation (285A).
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Shuhei Nakamura’s rating is based on a balanced assessment of Kioxia Holdings Corporation’s current market position and future prospects. The company is recognized as the third-largest producer of NAND flash memory, and while it has a strong cost advantage and is making strides in the data center segment, the potential for significant growth is tempered by market volatility.
Despite the potential for a substantial increase in value if Kioxia meets its long-term financial targets, there are concerns about the cyclical nature of the NAND industry and the impact of global supply and demand fluctuations. Additionally, the anticipated correction in NAND prices due to changes in demand dynamics poses a risk to future earnings, leading to a Hold rating as the risk and reward appear balanced at the current share price.
Nakamura covers the Technology sector, focusing on stocks such as Disco, Lasertec, and JEOL Ltd.. According to TipRanks, Nakamura has an average return of 16.1% and a 57.14% success rate on recommended stocks.