TDK Jumps on Upgrades and New 10,000+ Yen Price Targets (TDK)

Following TDK Corporation's (TDK) strong fiscal year earnings release last Thursday and an even more bullish forecast for this fiscal, its shares have jumped both at home (+3.57% today) and in the U.S. On Friday in Japan its ordinary shares (Tokyo: 6762) gained 2.80% while its ADRs gained 3.14% (its ADRs gained 1.65% Thursday following TDK's earnings release after the Tokyo Stock Exchange closed).

TDK's 32% higher y-o-y net profit and forecasted 38% increase in the current fiscal prompted a number of analysts to upgrade and boost target share prices. Credit Suisse Japan was the most bullish with an 11,200 yen price target (US$99). TDK closed Monday in Japan at 9,870 yen versus 9,270 yen before announcing earnings, a nearly 6.5% increase. The surging yen will add more gains to holders of TDK ADRs which closed Friday at $83.43. Monday's 9,870 yen close equals $87.23 at the current exchange rate of Y113.15/US$1. A list of TDK's analyst upgrades follows.

• Credit Suisse Japan: "neutral" --> "outperform", target of 11,200 yen (was 9,400y)

• Mizuho Securities: 3-->1, target of 11,000 yen

• UBS Japan: "neutral" --> "buy", target of 11,000 yen (was 9,200y)

• Shinko Securities: 2-->1

TDK Corporation ADR (TDK) 1-yr chart:

Comments

[Steven Towns:]

That's nonsense and unconstructive criticism. How would you have liked it to read? I didn't say anywhere in the post to "buy this now" or say "I recommend" TDK. I only stated facts. FACT: I. a stronger yen translates into higher ADR share prices, even in cases when the ordinary shares trade lower but the yen's gain on the dollar is higher percentage wise. II. I said "holders" of TDK ADRs... I didn't say "if you buy"... FACT: Credit Suisse was in fact the most "bullish" because it set the highest target share price among analyst upgrades in conjunction with an "outperform" rating upgrade from "neutral."

I respect your work and contributions. However, I strongly question the motive behind your comment.

2006 May 01 08:30 AM