Pigeon Corporation, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Hisae Kawamoto from Jefferies maintained a Buy rating on the stock and has a Yen2,000.00 price target.
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Hisae Kawamoto has given his Buy rating due to a combination of factors related to both industry dynamics and Pigeon’s specific positioning. He believes that heightened global worries over infant formula safety, along with recent recalls by two leading formula makers, are likely to cause supply disruptions and shift more parents toward breastfeeding solutions. In this environment, Pigeon, with its strong presence in breastfeeding-related products, is well placed to capture incremental demand that may arise from parents seeking safer alternatives to formula.
Kawamoto also argues that the market has not yet fully incorporated the potential earnings uplift from this shift into Pigeon’s current valuation. In particular, the contribution from its Lansinoh business, which focuses on breastfeeding support products, appears underappreciated relative to its growth prospects. This combination of a favorable demand backdrop and what he sees as a mismatch between fundamentals and share price performance underpins his positive stance on the stock. Accordingly, he views the current level as an attractive entry point for long-term investors and supports a Buy recommendation on Pigeon.