Jay Huang, an analyst from Bernstein, reiterated the Buy rating on SMC (OR) (SMECF – Research Report). The associated price target is Yen74,000.00.
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Jay Huang has given his Buy rating due to a combination of factors including SMC’s strong performance and promising future outlook. The company reported a 12% year-over-year increase in new orders for the fourth quarter of FY3/2025, showing strength across various regions and industries. This aligns with the broader recovery in factory automation, which is a positive indicator for SMC’s growth potential.
Despite challenges such as competition in China and the impact of US tariff hikes, SMC has demonstrated resilience and competitive strength. The company anticipates accelerated sales growth in FY3/2026, driven by recovery in the semiconductor sector and increased demand for electric vehicles and labor-saving technologies. Additionally, SMC plans to increase its capital expenditures to a record high, focusing on the development of a new technical center, which is expected to support future growth. The stock is currently trading below historical average multiples, making it an attractive investment opportunity.