Analyst Lim Rui Wen of DBS maintained a Buy rating on Mizuho Financial Group (MZHOF – Research Report), retaining the price target of Yen4,300.00.
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Lim Rui Wen has given his Buy rating due to a combination of factors including Mizuho Financial Group’s impressive financial performance and strategic initiatives. The company’s third-quarter profit for fiscal year 2024 surpassed expectations, fueled by increased lending income and strong fee income, alongside reduced provisions. Notably, despite Mizuho exceeding its nine-month profit target, it has upheld its full-year forecast, highlighting confidence in its business model.
Moreover, Mizuho is advancing its medium-term strategy to fortify its mass retail operations and enhance its customer base, which is one of the largest in Japan. The group is also focusing on expanding its asset management services and exploring overseas investments as growth drivers. Additionally, the announcement of share buyback plans is expected to positively impact its price-to-book value ratio, further supported by its strategic shift towards higher-margin businesses and capital policy improvements. These factors collectively underscore the potential for improved return on equity and a re-rating of its stock in the medium term.