Morgan Stanley analyst Lisa Jiang maintained a Buy rating on Mitsubishi Electric today and set a price target of Yen3,600.00.
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Lisa Jiang’s rating is based on a combination of factors that highlight Mitsubishi Electric’s potential for growth and value. The company has shown resilience in its stock performance, outperforming the TOPIX index by 14 points year-to-date in 2025. This positive trajectory is partly due to its re-evaluation as a ‘hidden defense stock’ amid rising geopolitical tensions and expectations for an increased defense budget in Japan. Additionally, the company announced a significant share buyback program, which is viewed favorably by investors.
Another critical factor in the Buy rating is the anticipated recovery in Mitsubishi Electric’s Factory Automation (FA) systems business. Despite a decline in sales for fiscal year 2025, order volumes have shown a promising upward trend, suggesting a potential rebound. The FA systems are expected to see a 3% sales increase in fiscal year 2026, contrary to the market’s more conservative guidance. This recovery, along with growth prospects in the infrastructure segment and potential restructuring benefits, supports the positive outlook for Mitsubishi Electric.
Jiang covers the Industrials sector, focusing on stocks such as Yaskawa Electric, Mitsubishi Electric, and Harmonic Drive Systems. According to TipRanks, Jiang has an average return of 4.2% and a 41.67% success rate on recommended stocks.