Positive Outlook for Harmonic Drive Systems Amid Robotics Sector Growth and Cyclical Recovery

In a report released today, Jay Huang from Bernstein maintained a Buy rating on Harmonic Drive Systems (HSYDF – Research Report), with a price target of Yen5,600.00.

Jay Huang’s rating is based on a combination of factors that indicate a positive outlook for Harmonic Drive Systems. The company has reported a stabilization in domestic orders and a gradual recovery in customer orders, suggesting that the business cycle is bottoming out. This recovery is further supported by a significant increase in new orders, particularly from the robotics sector, which is experiencing growing demand.
Additionally, Harmonic Drive Systems is poised to benefit from the emerging trend in humanoid robots, which is expected to become a substantial part of its business in the coming years. Despite the current conservative guidance due to an uncertain business environment, the long-term prospects appear promising. The company’s valuation remains attractive, with a target price maintained at JPY 5,600, reflecting potential upside from cyclical recovery and strategic positioning in the robotics market.