Industries — Energy & Utilities: Third
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Industries — Energy & Utilities: Third

Takashi Miyazaki

Citi

Citi’s Takashi Miyazaki falls from first place to third but is still considered “the best talent on the sell side,” as one satisfied client puts it. The analyst is bearish on electric power companies on the belief that restarting nuclear power plants — most of which have been shut down since the 2011 disaster at the Fukushima Daiichi facility — will take longer than expected. “Also, we think electricity rate hikes and other positive news flows have already been priced in,” he says. Miyazaki predicts that none of these companies will pay dividends in the current fiscal year, which began this month, and that “systemic reforms are being pushed that are likely to erode the competitiveness of existing power firms.” He is more upbeat about the long-term prospects for oil distributors and petrochemicals manufacturers, expecting valuations to rise and margins to stabilize. Current top stock picks include longtime favorite JX Holdings, a Tokyo-based diversified energy company, primarily on valuation. “We consider visibility on earnings growth in fiscal 2013 good, on the start of new copper mine production and the upturn in petrochemicals prices,” Miyazaki explains. — Leslie Kramer



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