TDK Corporation: Strategic Positioning and Growth Potential Drive Buy Rating

DBS analyst Jim Hin Kwong Au has maintained their bullish stance on 6762 stock, giving a Buy rating on May 28.

Jim Hin Kwong Au has given his Buy rating due to a combination of factors including TDK Corporation’s strategic positioning and growth potential. The company is a leader in the electronics component industry, particularly in passive components and batteries, with a significant market share in the cellphone battery sector. This strong market position is expected to benefit from the increasing demand for electric vehicles and TDK’s competitive edge in battery production, which are anticipated to be significant growth drivers in the long term.
Additionally, TDK’s strategic joint venture with CATL to expand battery production capacity positions the company to capitalize on the growing electric vehicle market. The development of next-generation solid-state batteries, such as CeraCharge, further enhances TDK’s prospects, especially in the wearable technology sector. These innovations, coupled with a stable financial outlook and expected earnings growth, underpin the Buy rating, with a target price of JPY 2,026 per share.

Hin Kwong Au covers the Technology sector, focusing on stocks such as BYD Electronic (International) Co, Apple, and Sunny Optical Technology (Group) Co. According to TipRanks, Hin Kwong Au has an average return of 7.9% and a 51.30% success rate on recommended stocks.

In another report released on May 28, Macquarie also maintained a Buy rating on the stock with a Yen2,000.00 price target.