- Komatsu has been losing share in China and is increasingly seeing Chinese competitors taking away share in construction and mining markets across Southeast Asia, undermining some important profit centers.
- A leader in surface and soft rock mining equipment (coal especially), Komatsu is vulnerable to an ongoing shift toward hard rock mining.
- Komatsu is still going to enjoy an upturn in its construction and mining businesses, and that could take the shares to $30 or above, but it's a relatively risky trade.
For further details see:
Komatsu Leveraged To Improving Mining Demand, But Long-Term Strategic Positioning Is Iffy