Nomura assumed with a Neutral at JPMorgan

JPMorgan assumed coverage of Nomura with a Neutral rating and 960 yen price target. The analyst believes the growth of asset-based revenues and efforts to optimize capital allocations will contribute to improving the cost of equity for the securities sector through enhanced earnings and predictability of shareholder returns. While the possibility exists that Nomura, with its higher beta, will outperform depending on the direction of the business environment, JPMorgan prefers Daiwa in the medium term due to its greater potential for improving return on equity, the analyst tells investors in a research note.