SMTOF - Sumitomo Electric Meidensha downgraded at Goldman Sachs

2023-06-29 19:19:28 ET

Sumitomo Electric Industries ( OTCPK:SMTOF ) ( OTCPK:SMTOY ) and Meidensha both were downgraded by analysts at Goldman Sachs on Friday.

The lowered the rating for Sumitomo Electric ( OTCPK:SMTOF ) ( OTCPK:SMTOY ) to Neutral from a previous investment rating of Buy.

“We expect Sumitomo Electric’s return improvement will take time due to slow business mix improvement,” Ryo Harada, analyst at Goldman Sachs Japan, said in a June 30 report. “We will take a ‘wait-and-see' approach until management’s messaging on reorganization becomes clearer.”

The analyst team downgraded Meidensha to Sell from a previous rating of Neutral.

“For Meidensha, we believe returns will not improve due to the capital-intensive xEV motor/invetor business, and as a result we don’t expect the market to focus on this name,” the report said.

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