Nomura Holdings (NRSCF – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Natsumu Tsujino from Bank of America Securities reiterated a Hold rating on the stock and has a Yen1,110.00 price target.
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Natsumu Tsujino’s rating is based on Nomura Holdings’ strong third-quarter performance, which surpassed both internal forecasts and market expectations. The company’s adjusted net profit and pretax profit were significantly higher, driven by lower head office costs and a favorable tax rate due to a larger share of overseas profits. However, despite these positive results, the rating remains neutral due to a conservative outlook on the company’s return on equity (ROE) and cost of capital.
Natsumu Tsujino raised the price objective for Nomura Holdings from ¥930 to ¥1,110, reflecting an improved fair price-to-book (P/B) ratio supported by a normalized ROE estimate of 8%. The decision to maintain a Hold rating, despite an optimistic price outlook, suggests a balanced perspective considering both the company’s current performance and potential future challenges. The analyst also considered the recent dividend announcements, which may impact shareholder returns, while maintaining a cautious stance on long-term profitability projections.
NRSCF’s price has also changed moderately for the past six months – from $4.930 to $5.890, which is a 19.47% increase.