Nomura Holdings, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Natsumu Tsujino from Bank of America Securities maintained a Hold rating on the stock and has a Yen1,160.00 price target.
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Natsumu Tsujino has given his Hold rating due to a combination of factors influencing Nomura Holdings. The company is making strides in exceeding its return on equity target of 8-10% and is entering a significant growth phase, particularly with increased interest from overseas investors in Japan. However, despite these positive indicators, management has not committed to raising its ROE target and is cautious about taking on new risks, which suggests a conservative approach to growth.
Furthermore, while Nomura’s acquisition of Macquarie’s U.S. asset management business is expected to contribute to EBITDA, the initial costs are substantial, and the benefits may not be realized immediately. The company is also investing in key areas such as AI, IT, and crypto assets, which could provide long-term growth but require significant upfront investment. These factors, combined with the lack of a clear change in shareholder return policies, contribute to the Hold rating as the company navigates these transitional phases.