Mitsubishi Heavy Industries initiated with a Neutral at Goldman Sachs

Goldman Sachs analyst Yuichiro Isayama initiated coverage of Mitsubishi Heavy Industries (MHVYF) with a Neutral rating and 2,200 yen price target The firm notes Mitsubishi Heavy Industries’ valuation has risen sharply in the past 12 months owing to its high weighting of aerospace & defense business along with strong growth prospects in the energy sector, including nuclear and thermal power. Unless the company were to maintain growth rates/returns in the historical range in a sustainable manner, Goldman thinks it will struggle to justify a premium close to the 50% recorded recently.