PCRFY - Panasonic: Look Beyond Operating Income Miss

2024-05-15 06:56:50 ET

Summary

• Panasonic's recent FY 2024 operating income missed the consensus estimate by -9.6%, but this is already reflected in the stock's undemanding valuation multiples.
• More importantly, there are valuation re-rating drivers for the stock, like portfolio restructuring and the EV battery business' growth.
• A Buy rating for Panasonic is retained, as the stock's valuations are attractive and the company's prospects for the long run are favorable.

Elevator Pitch

I have a Buy investment rating for Panasonic Holdings Corporation stock ( PCRFF ) (PCRFY) [6752:JP]. My opinion is that investors should look beyond Panasonic's operating profit miss for the recent fiscal year. Instead, the focus should be on the stock's valuations and the company's long-term prospects....

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