Kobayashi Pharmaceutical initiated with an Underperform at Jefferies

Jefferies initiated coverage of Kobayashi Pharmaceutical with an Underperform rating and 4,800 yen price target. The analyst initiated coverage on 11 stocks in the Japan cosmetics and toiletries sector. Investment themes for fiscal 2024 are robust consumption by younger consumers and changing consumption patterns, the sustainability of daily goods prices and volumes, and slow recovery in the China and Korea duty-free channels, the analyst tells investors in a research note. The firm thinks younger consumers are driving demand in Japan, and prefers Unicharm and Rohto Pharmaceutical, with core business in priority-spending categories.