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: