In a report released today, Yuichiro Isayama from Goldman Sachs upgraded Mitsubishi Heavy Industries (MHVYF – Research Report) to a Buy, with a price target of Yen2,300.00.
Yuichiro Isayama has given his Buy rating due to a combination of factors that highlight Mitsubishi Heavy Industries’ strong potential for growth. The analyst increased the 12-month target price for the company, citing a favorable risk/reward profile compared to its peers in the sector. This optimistic outlook is supported by expectations of robust sales and profit growth, particularly within the machinery sector, where the company is expected to outperform.
In the energy segment, Isayama notes the potential for increased service sales in the gas turbine combined cycle (GTCC) power plant business, driven by an expanding installed base. This has led to an upward revision of profit estimates for the energy systems segment. Additionally, the aircraft, defense, and space segment is showing promising progress, with high orders intake and better-than-anticipated revenue recognition from defense projects, contributing to improved profit margins. These factors collectively underpin the Buy rating for Mitsubishi Heavy Industries.
Isayama covers the Industrials sector, focusing on stocks such as Mitsubishi Heavy Industries, Yaskawa Electric, and Yaskawa Electric. According to TipRanks, Isayama has an average return of 0.8% and a 47.46% success rate on recommended stocks.