In a report released today, Miki Sogi from Bernstein maintained a Hold rating on Otsuka Holdings Co (OTSKF – Research Report), with a price target of Yen7,800.00.
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Miki Sogi has given his Hold rating due to a combination of factors that reflect the current market conditions and Otsuka Holdings Co’s position within the pharmaceutical sector. The stock has performed well over the past two years, and its current price seems to incorporate the anticipated growth opportunities, such as outcomes from clinical trials and regulatory decisions. This suggests that the market has already accounted for these potential developments, limiting the immediate upside potential.
Furthermore, the risk-reward balance for Otsuka’s stock appears to be stable, with limited risks on both the upside and downside. While the company has significant exposure to the US market, the impact of potential tariffs is expected to be minimal due to the nature of pharmaceutical exemptions. Additionally, other companies within the sector, such as Chugai and Daiichi Sankyo, are perceived to offer better investment opportunities at this time. As a result, Miki Sogi maintains a Hold rating, indicating that investors might consider looking elsewhere for more attractive returns.
Sogi covers the Healthcare sector, focusing on stocks such as Astellas Pharma, Chugai Pharmaceutical Co, and Daiichi Sankyo Company. According to TipRanks, Sogi has an average return of -16.5% and a 7.14% success rate on recommended stocks.