East Japan Railway Co
9020: XTKS (JPN)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
¥5,121.00 | Bftfxx | Wzyhczts |
Strong Quarter for JRE but Growth Momentum Expected to Slow; Shares Fully Valued
We maintain our fair value estimate for narrow-moat-rated East Japan Railway, or JRE, at JPY 9,500. We consider shares fully valued at current levels and think investors are better served waiting for a better entry point. Although JRE posted solid results that beat consensus estimates during the quarter, we don’t expect the growth momentum to continue through the coming quarters, given the near-term headwinds such as the impending consumption tax hike in October and negative spillover effects from the United States-China tariff war.