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Panasonic’s Strong Q1 FY2026 Performance Justifies Buy Rating Despite Valuation Risks

Panasonic’s Strong Q1 FY2026 Performance Justifies Buy Rating Despite Valuation Risks

Atul Goyal, an analyst from Jefferies, maintained the Buy rating on Panasonic. The associated price target was lowered to Yen1,835.00.

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Atul Goyal has given his Buy rating due to a combination of factors including Panasonic’s strong performance in the first quarter of FY2026. The company reported a significant increase in operating profit, with a 9% year-over-year growth in adjusted operating profit and a 24% increase in operating profit, despite missing consensus expectations. This growth was achieved even as the top line saw a decline due to the de-consolidation of the Auto segment.
Furthermore, all of Panasonic’s core segments showed profit growth, which supports a positive outlook. Although there are valuation risks associated with the Blue Yonder business, Goyal has accounted for these by applying a 12x price-to-earnings ratio for ex-IRA subsidies, resulting in a lower price target of ¥1,835. This target still represents a 23% increase, justifying the Buy rating.

In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a Yen1,676.00 price target.

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