Investor concerns over Pal Group's high input costs due to the Middle East conflict have likely faded, given initial U.S.-Iran agreement, SMBC Nikko Securities analysts say in a research report. Also, the Japanese company's P/E should increase if more footfall traffic at its 3Coins stores in Japan leads to higher profit. The brokerage expects operating profit of the company, which has household goods and apparel businesses, to grow 9% to 31.4 billion yen in fiscal year ending February 2028, assuming recovery for 3Coins as initiatives boost product innovation. The brokerage initiates coverage of the stock with an outperform rating and a target price of 1,800 yen. Shares are 4.3% higher at 1,492 yen. (ronnie.harui@wsj.com)
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Investor Concerns Over Pal Group's High Input Costs Likely Faded — Market Talk
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Investor concerns over Pal Group's high input costs due to the Middle East conflict have likely faded, given initial U.S.-Iran agreement, SMBC Nikko Securities analysts say in a research report. Also, the Japanese company's P/E should increase if more footfall traffic at its 3Coins stores in Japan…