The 2014 All-Japan Research Team: Paper & Textiles, No. 3: Wakako Sato
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The 2014 All-Japan Research Team: Paper & Textiles, No. 3: Wakako Sato

< The 2014 All-Japan Research Team Wakako Sato Mizuho Securities Group First-place appearances: 0

Total appearances: 2

Analyst debut: 2013 In third place is Wakako Sato, who debuted on this list last year as a runner-up. The Mizuho Securities Group researcher’s “strengths are consistency and persistence,” one backer reports. “She holds strong accountability about her recommendations and is very diligent to update investors of changes.” Sato notes that the textiles segment underperformed last year “as materials shipments to the [liquid-crystal-display] industry slumped,” she says, “with little benefit from domestic demand.” But she expects to see an upturn this year. “The negative news appears to have passed, and earnings appear likely to expand, centered on businesses in which these companies have advantages in global competition,” adds Sato. In addition, consumer staples companies that are positioned to benefit from the rise in domestic unit prices will outperform, she projects, particularly in the daily goods market. Two names she currently favors are Tokyo-based Kao Corp. and Toray Industries. Kao is a manufacturer of chemicals products and household goods that is attractive because of its “low valuation among global consumer goods companies and earnings expansion in overseas business, centered on the disposable diaper business,” the analyst explains. At ¥4,100, her price objective for the stock represents a 26.5 percent premium to its mid-March value. Toray Industries, which produces chemicals, fibers, plastics and textiles, “is enjoying stable growth in areas in which it has distinctive business models,” Sato says, “such as the textiles and carbon-fiber businesses.” The stock was trading at ¥660 in mid-March, well below her target price of ¥880.

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