Hoshizaki Corp
6465: XTKS (JPN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥9,962.00 | Pklsv | Wkxnnqbqq |
Strong Overseas Demand Propels Hoshizaki’s Revenue Growth, but Cost Pressures Remain; FVE Maintained
We retain our JPY 4,800 fair value estimate for Hoshizaki, following the recent 2-for-1 stock-split, as the increase in the sales forecast is mostly offset by a decline in the operating margin forecast. The company’s stock price rose after the June-quarter earnings announcement as a result of stronger-than-anticipated revenue growth. However, shares are still undervalued, and we think the wide-moat domestic market leader is well-positioned for medium-term, top-line growth in its largest market, as both the pandemic and the components shortage ease.