Rohto Pharmaceutical downgraded to Underperform from Buy at Jefferies

Jefferies analyst Hisae Kawamoto downgraded Rohto Pharmaceutical (RPHCF) to Underperform from Buy with a price target of 2,450 yen, down from 3,900 yen. Q2 earnings reflect slower growth in Japan skincare and a higher cost of sales ratio, advertising, and R&D expenses, notes the analyst, who views the slowdown in Japan brand diversification and the high weighting of winter products as “structural issues.”