In a report released on December 14, Sho Kawano from Goldman Sachs upgraded COSMOS Pharmaceutical Corporation to a Buy, with a price target of Yen9,500.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Sho Kawano’s rating is based on several compelling factors. The recent decline in COSMOS Pharmaceutical Corporation’s stock price, which has fallen by 17% over the past three months while the TOPIX index rose by 7%, has brought the stock’s valuation to the lower end of its historical range. This presents an attractive buying opportunity, prompting an upgrade from Neutral to Buy.
Despite short-term market volatility, COSMOS Pharmaceutical has demonstrated a consistent ability to grow its operating profits, achieving a 9% compound annual growth rate over the past decade. The company’s strategy of balancing price competitiveness with profitability, coupled with its robust plan to open 100-120 new stores annually, underpins its potential for sustained profit growth. Additionally, an improved outlook for same-store sales growth has led to an increase in operating profit estimates for the coming years, further supporting the decision to raise the 12-month target price to ¥9,500.