Kubota upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs analyst Takeru Adachi upgraded Kubota (KUBTF) to Buy from Neutral with a price target of 2,100 yen, up from 1,600 yen. The company’s Q2 profitabiltiy was much higher than expected mainly due to the positive impact of lower sales incentives and price hikes in North America, the analyst tells investors in a research note. Kubota also disclosed that it revised its sales finance program for some equipment types in March, and the firm views the effective price hikes amid lackluster demand as a sign of the shift to a greater focus on profitability, Goldman Sachs added.