Technology
Whilst Nikon shares have recovered 90% from early ’21 lows when Asymmetric Advisors first recommended the stock and earnings will slow into next FY, the company seems on course to make a major transition from a contrarian / value to growth name. This is because not only has it restructured and reoriented its camera business but due to the emergence of one new earnings pillar (lenses for EUV inspection) and the potential for a second (the purchase of metal 3D printing machine maker SLM). Meanwhile, PER at 11x, 0.78x PBR and potential for further buybacks provide valuation backing.
Edition: 149
- 25 November, 2022
Nikon Corp (7731 US)
Technology
News that Nikon will be ending production of its heavily loss-making single lens digital cameras only increases Asymmetric Advisors bullish view of the stock. Despite the shares having risen ~30% since Asymmetric made their contrarian Buy call back in February, analyst’s ratings remain overwhelmingly negative. Nikon’s low PBR and high net cash position (c.40% of mkt cap) combined with its lower cost base, pick up in higher end camera sales and rising stepper orders suggests further significant upside remains.
Edition: 112
- 11 June, 2021