Goldman Sachs analyst Chikai Tanaka upgraded the rating on Nomura Research Institute to a Buy yesterday, setting a price target of Yen6,500.00.
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Chikai Tanaka has given his Buy rating due to a combination of factors that highlight Nomura Research Institute’s strong growth potential. The company is experiencing robust demand in its financial IT and IT platform services, which has led to an increase in operating profit estimates for the coming years. Additionally, there are positive signs of recovery in the industrial IT sector, and the anticipated impact of generative AI on margins from FY3/27 onwards further strengthens the growth outlook.
Tanaka has also adjusted the 12-month target price for Nomura Research Institute’s stock to ¥6,500, up from ¥6,000, reflecting a potential upside of 14%. This adjustment is based on a target P/E ratio of 31X, which is notably higher than the average upside for Japan IT services coverage. The combination of these factors has led to an upgrade of the stock from a Neutral to a Buy rating.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a Yen6,811.00 price target.