Shiseido downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Akiko Kuwahara downgraded Shiseido to Neutral from Overweight with a price target of 3,550 yen, down from 5,800 yen. The firm, which recommends a cautious stance on the Japanese cosmetics sector as it believes intensifying price competition among retailers in China could have an indirect effect on the travel retail market and Japanese inbound demand, notes that Shiseido shares have fallen sharply, so it sees limited further downside potential. However, the firm adds that it expects no upside potential until the effectiveness of the new management strategy can be confirmed.