MITSY - Mitsui & Co.: Not Enough Progress For An Upgrade
2024-02-04 04:03:52 ET
Summary
- Mitsui & Co. made only small changes to the full-year profit forecast in the latest earnings release.
- As the share price has increased further since last quarter with little change in profit forecast or relative valuation, the company remains a Hold.
- Looking out further, commodity volume growth in FY 2025 should allow profits and dividends to grow even if commodity prices remain stable.
Small Forecast Bump, Not Enough To Excite Investors
I have been covering Mitsui & Co. ( MITSY ) ( MITSF ) on Seeking Alpha since Berkshire Hathaway's ( BRK.A ) ( BRK.B ) 2020 purchase of shares in all five major Japanese trading companies. Most recently, I downgraded the stock to a Hold last quarter from the Buy rating I had on it since February 2022. Last quarter , Mitsui increased its full year profit forecast and raised the dividend, thanks to improved iron ore prices and a weaker yen. Despite these positive factors, I rated the company a Hold based on concerns over these factors reversing in a weaker economy....
Mitsui & Co.: Not Enough Progress For An Upgrade