Komatsu: Favorable Sales Mix And Price Hike Reinforce My Buy Rating

Nov. 16, 2023 8:46 AM ETKomatsu Ltd. (KMTUY) StockKMTUY2 Comments
The Value Pendulum
Investing Group Leader

Summary

  • Komatsu derived about 67% of its sales from the parts & service and mining equipment businesses, which are expected to be resilient even though the macroeconomic environment is weak.
  • KMTUY has guided for a +3.5% price hike in the second half of the current fiscal year.
  • A Buy rating for Komatsu is maintained after analyzing the company's revenue mix and its guidance for price increases.
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New yellow powerful front loader Komatsu WA470.

Stanislav Palamar/iStock Editorial via Getty Images

Elevator Pitch

I continue to assign a Buy investment rating to Komatsu (OTCPK:KMTUY) [6301:JP] stock.

I have previously highlighted the "high probability that Komatsu can register an earnings beat for fiscal 2023" in my prior September 5, 2023 write-up. It

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This article was written by

The Value Pendulum
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The Value Pendulum is an Asian equity market specialist with over a decade of experience on both the buy and sell sides.

He is the author of the investing group Asia Value & Moat Stocks, providing ideas for value investors seeking investment opportunities listed in Asia, with a particular focus on the Hong Kong market. He hunts for deep value balance sheet bargains and wide moat stocks and provides a range of watch lists with monthly updates within his investing group.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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