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Shares and ADRs of Nomura Holdings (JP: 8604) (NMR) hit a calendar year low Thursday on a Deutsche Bank report cutting its target share price to ¥2,200 from ¥2,550. DB Securities estimates subprime loan related losses at Nomura of ¥6 billion to ¥9 billion ($49m - $74m).

Japanese investors appear to be watching the subprime situation in the U.S. more closely given its impact on market sentiment, on domestic firms' financials and on bond portfolios.

Nomura's ordinary shares reached an intra-day and calendar year low of ¥2,180 on Thursday (closing down 4.8% to ¥2,205), while closing up slightly to ¥2,210 ($18.06 at ¥122.4/$1) Friday.

DB's ¥2,200 target equals $17.97 at ¥122.4/$1. Nomura's ADRs lost 2.7% to $18.51 on Thursday.

Something else to be aware of with Nomura is stock trading volume has been on the light side in Tokyo, as I've seen what seems like almost daily reports of new or near calendar low turnover. In addition, there has been very little IPO activity.

M&A among domestic firms remains strong, but there hasn't been much cross-border.

On a positive note, earlier this week Nomura announced it now has more than ¥30 trillion ($247b) of assets under management, the most ever for a Japanese asset manager.

Nomura reports Q1 earnings July 25.

Nomura Holdings (NMR) 1-year chart:

Nomura-NMR-chart-07-12-07


Disclosure: The author does not own shares of Nomura.

Source: Deutsche Bank Cuts Nomura's Share Target on Expected Subprime Losses