IX - ORIX: Look Beyond Earnings Miss And Focus On ROE Target

2024-02-08 18:01:54 ET

Summary

• ORIX Corporation's recent third-quarter earnings came in -2% lower than what the sell-side expected, but this was still equivalent to an impressive bottom-line growth rate of +40% QoQ.
• The company stuck to its existing EPS guidance and ROE target for FY 2024 and FY 2025, despite the bottom line miss.
• IX is worthy of a Buy rating, as it can trade at a much higher P/B multiple based on my valuation analysis.

Elevator Pitch

I continue to assign a Buy rating to ORIX Corporation ( IX ) [8591:JP]. My November 20, 2023, update touched on IX's asset divestments, and the outlook for ORIX Corporation's international renewable energy business and Banking & Credit business....

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