Mizuho Financial Group (MZHOF – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst Shinichiro Nakamura from Bank of America Securities maintained a Buy rating on the stock and has a Yen4,200.00 price target.
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Shinichiro Nakamura has given his Buy rating due to a combination of factors related to Mizuho Financial Group’s potential for profit and shareholder return improvements. Despite recent weak share performance due to conservative guidance for FY3/26 and unclear shareholder return policies, Nakamura sees significant upside potential. The company has indicated that its conservative net profit guidance could be revised upward as early as the first quarter results, driven by recovering investment banking activities and strong secondary transactions.
Additionally, Mizuho’s medium-term targets are seen as conservative, with the potential for higher returns on equity if economic conditions improve and interest rates rise. The bank’s strategy to reduce cross-shareholdings could lead to increased gains from stock sales. Furthermore, Mizuho is expected to exceed its total shareholder return ratio target of 50%, as it has minimal need to accumulate capital, allowing for a favorable balance between buybacks and growth investments. These factors contribute to the positive outlook and the Buy rating from Nakamura.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a Yen4,300.00 price target.