2024-06-21 13:02:06 ET
Summary
- MIELF's FY 2026 guidance relating to ROE and operating profitability wasn't as good as expected, because of the weakness associated with its factory automation systems business.
- But Mitsubishi Electric's long-term prospects are still favorable, taking into account the growth targets for its data-related business Serendie, and potential value-creation opportunities pertaining to portfolio restructuring.
- Mitsubishi Electric's rating is downgraded to a Hold, as the stock is fairly valued based on its updated FY 2026 ROE target.
Elevator Pitch
My rating for Mitsubishi Electric Corporation ( MIELF ) ( MIELY ) [6503:JP] stock is a Hold....
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Mitsubishi Electric: Spotlight Is On Guidance Revision And Long-Term Drivers (Rating Downgrade)