Strong Buy Recommendation for Fanuc Corporation Amidst Robust Growth and Strategic Positioning

Analyst Jay Huang from Bernstein reiterated a Buy rating on Fanuc Corporation (6954 – Research Report) and decreased the price target to Yen5,400.00 from Yen5,600.00.

Jay Huang’s rating is based on Fanuc Corporation’s strong financial performance and promising growth prospects. The company’s recent quarterly results surpassed expectations, particularly in terms of profit margins, driven by robust order growth in key markets like China and other parts of Asia. This growth aligns with the global trend towards increased factory automation and investment spurred by deglobalization.
Despite uncertainties related to U.S. tariffs, Fanuc’s strategic decisions, such as maintaining higher inventory levels for supply chain stability and potential local production in the U.S., position it well for future success. The anticipated continuation of the factory automation upcycle into mid-2027, coupled with Fanuc’s ability to adjust pricing to mitigate tariff impacts, supports the Buy rating. The stock’s predictable performance during such upcycles further reinforces the positive outlook.

In another report released on April 10, Citi also maintained a Buy rating on the stock with a Yen4,500.00 price target.