Sharp Corporation: Sell Rating Due to Disappointing FY26 Guidance and Stretched Valuation

Jefferies analyst Atul Goyal maintained a Sell rating on Sharp Corporation (6753 – Research Report) yesterday and set a price target of Yen340.00.

Atul Goyal has given his Sell rating due to a combination of factors affecting Sharp Corporation. One of the primary reasons is the company’s disappointing guidance for FY26, which suggests operational and net profits that fall short of expectations. Despite efforts to improve profitability through cost-cutting measures, Sharp is experiencing a decline in sales, which raises concerns about its long-term growth prospects.
Moreover, the valuation of Sharp’s stock appears stretched, trading at over twice its price-to-book ratio, with limited positive catalysts anticipated in the near future. The company is also heavily involved in highly commoditized sectors such as TVs, mobile phones, and electronic components, which are characterized by intense competition and low margins. These challenges contribute to the difficult situation Sharp finds itself in, justifying the Sell rating.

6753’s price has also changed slightly for the past six months – from Yen888.400 to Yen937.400, which is a 5.52% increase.